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Beijer Ref Q3 2017

Rising demand means a strong quarter

Net sales in the third quarter of 2017 increased by 4 percent compared with the same period last year, amounting to SEK 2,555 million (2,461).

The operating profit for the third quarter of 2017 was SEK 217 million (173). This is an increase of 25 percent on the same period last year.

The profit for the period was SEK 149 million (117), an increase of 28 percent on the same period last year.

Earnings per share amounted to SEK 3.47 (2.71).

Acquisition of DX Portugal.

Since the end of the reporting period, a contract has been signed to acquire the South African company Tecsa.

Comments by the CEO

Rising demand means a strong quarter 

We have ended another strong quarter. A warm summer in Southern Europe helped increase the need for air conditioning even further, and some of our biggest markets had double-digit growth. Our strong, established brands are well positioned to meet increased demand. 

The phase-out of refrigerants with a negative climate impact is continuing. Import restrictions are also causing rising prices for these refrigerants, which had a positive impact on the Group’s profit. In parallel, demand for greener alternatives is growing.

Investment in our own production of green refrigeration systems is continuing. Organic growth for our OEM activities is almost 6 percent. Demand is high not only in Europe. During the quarter, the green light was given for Beijer Ref to supply the first transcritical CO2 refrigeration system to the retail giant Metro in China. This paves the way for considerably more orders on this huge market. Our CUBO2 Smart refrigeration system, one of the greenest products on the market for small stores, has also been well received in several European countries. It is being launched in Australia in the next quarter. This is a good indicator that we are helping drive the development of the industry in a more environmentally friendly direction.

The warm summer was most obvious in Southern and Central Europe. Consequently, France, our biggest, most important market, which also benefited from a strong economy, reported organic growth of 9 percent. Central Europe reported growth of 7 percent, with the UK accounting for a double-digit increase of approximately 16 percent. The increasing pace of the phase-out of refrigerants with a high GWP value is largely behind this growth. Our sales are increasing by 3 percent in the Nordic region and 5 percent in Eastern Europe. There is also stable development in Asia Pacific, with growth of 5 percent. Sales of air conditioning units are high, and the restructuring of operations in Australia is now having a positive impact on profit.

Africa continued to develop slowly, primarily on account of the weak economic situation. However, the potential of this market remains very high. Consequently, it is extremely gratifying that in mid-October we signed a contract for the biggest acquisition of the year so far, of Tecsa in South Africa. We are now building a solid base on a big market that is adjudged to have considerable growth potential as the population’s standard of living gradually improves.

Another important acquisition is the Portuguese company DX Por. This means yet another country for our map of Toshiba distributors, and it will gradually produce higher market shares in Portugal.

We take a generally very positive view of the future, with markets that are developing fast and rising demand for our products. We have our cost base well under control and are extremely well placed to enter the fourth quarter.

Per Bertland

Third quarter 2017


Beijer Ref increased its sales by 3.8 percent to SEK 2,555 million (2,461) during the third quarter of 2017. The increase in sales is due to continued strong growth in demand on our European key markets. Adjusted for exchange rate fluctuations and acquisitions, there was a 4.6 percent organic increase in sales. During the first three quarters of the year, sales increased by 8.5 percent to SEK 7,429 million (6,845). Adjusted for exchange rate fluctuations and acquisitions, there was a 3.5 percent organic increase in sales.


Group operating profit amounted to SEK 217 million (173) during the third quarter, an increase of 25.4 percent. A warm summer, primarily in southern Europe, resulted in increased demand for air conditioning, and this had a positive impact on the profit for the period. Dramatic price rises for refrigerants with a high GWP value also had a positive impact on profit. Adjusted for exchange rate fluctuations and acquisitions, there was a 26.0 percent organic increase in operating profit. During the first three quarters of the year, operating profit increased by 21.9 percent to SEK 546 million (448). Adjusted for exchange rate fluctuations and acquisitions, there was a 17.5 percent organic increase in operating profit. During the first nine months of the year, Group net financial items amounted to SEK -22 million (-25). Pre-tax profit was SEK 525 million (423). The profit for the period was SEK 375 million (299). Earnings per share amounted to SEK 8.67 (6.88).

Cash flow 

Cash flow from operating activities before change in working capital was SEK 500 million during the first nine months of 2017, compared with SEK 381 million during the corresponding period of the previous year. During the first nine months of the year, the working capital increased by SEK 130 million against an increase of SEK 352 million during the same period of the previous year. This results in cash flow from operating activities of SEK 366 million, compared with SEK 29 million in the previous year. Working capital at the beginning of 2017 was higher than at the beginning of 2016, which meant higher cash flow than during the corresponding period of the previous year.


Group investments in fixed assets amounted to SEK 72 million (61) in the first nine months of the year.

Significant events during the year

As part of Beijer Ref’s objective to be at the cutting edge of the transition to environmentally friendly refrigeration technology, the first environmentally friendly, carbon dioxide-based refrigeration system was delivered to Chile at the beginning of the year. This was the Group’s first supply in South America and is in line with Beijer Ref’s focus on carbon dioxide and other environmentally friendly refrigeration technology to contribute to lower impact on the greenhouse effect.

During the second quarter, Maria Rydén was appointed as the new CFO and member of the Group management team. Her most recent position was as CEO of Ikano Vårdboende and she was previously CFO of Ikano Fastigheter, Dole and Switchcore. Maria Rydén will take up her position on 1 November 2017.

The assets of the Portuguese HVAC distribution company DX Por, which has its head office in Porto, were acquired in September. DX Por was founded in 2005 and has annual sales of approximately SEK 40 million. The company is a main distributor for Toshiba HVAC (Heating, Ventilation, Air Conditioning) in Portugal. The Portuguese HVAC market, which has gradually recovered since the crisis in 2008, is estimated to be worth almost SEK 900 million. DX Por is being integrated in Beijer Ref’s organisation and is included in the consolidated accounts from September 2017.

The refrigerants HCFC and HFC are being actively phased out in China. The German retail chain Metro AG has therefore selected Beijer Ref’s subsidiary SCM Frigo to supply the chain’s first transcritical CO2 refrigeration system. The technology will be installed in Metro’s wholesale store in Beijing later in the year. This will be a major milestone in the carbon dioxide emissions field in China. Metro AG previously communicated its target to reduce the use of F-gases in stores worldwide by 95 percent by 2030.

Events after the reporting period

In October, Beijer Ref AB signed a contract to acquire Tecsa (Pty) Ltd and its assets. Tecsa (Pty) Ltd, owned by Westbrooke Investment and operating under the brand TecsaReco, is a wholesaler based in South Africa which offers a wide range of products and brands for commercial and comfort refrigeration and air conditioning and spare parts for white goods. Tecsa was founded in 1965 as a wholesaler of parts and accessories for household appliances. In 2013, Tecsa acquired Reco, a refrigeration and air conditioning wholesaler that began operating in 1947. The company’s head office is in Johannesburg and sales are via a number of branches, one of which is in Namibia and another in Botswana. The parties have signed a binding contract, and the takeover is planned for 1 March 2018. The acquisition is estimated to have a long-term positive impact on both sales and profit. The acquisition is subject to approval by the competition authorities in South Africa, Namibia and Botswana.

Risk description 

The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report.

This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors.

Malmö, 20 October 2017

Beijer Ref AB (publ)

Per Bertland, CEO

For more information: 

Per Bertland, CEO – switchboard +46 (0)40-35 89 00

This information is information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 20 October 2017.

Accounting policies 

This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report, except as specified in the following. New and amended standards applied as from 1 January 2017 are not expected to have any material effect on the Group’s or Parent’s profit or financial position. For more information on future standards that have not yet entered into force, see page 43 of the 2016 Annual Report.

Auditor’s report


We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2017 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review 

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.  A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.


Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 20 October 2017

PricewaterhouseCoopers AB

Lars Nilsson                                                                                                                            

Authorized Public Accountant

Auditor in charge

Mikael Nilsson

Authorized Public Accountant

Beijer Ref in short 

The Beijer Ref Group is focused on trading and distribution operations within refrigeration products, air conditioning and heat pumps. The product programme consists mainly of agency products from leading international manufacturers and, in addition, some manufacture of own products, combined with service and support for the products. The Group creates added value by contributing: technical competence to the products; accounting for knowledge and experience about the market; and by providing efficient logistics and warehousing.

      Operations are carried out by region within the Beijer Ref, which comprises Beijer Ref ARW (Air conditioning, refrigeration, wholesale) and Toshiba’s distribution operation within air conditioning and heating. The Beijer Ref Group is a leading operator within the refrigeration sector in Europe and has a significant position within air conditioning in Europe. The operation is split into six geographic segments: Nordic countries, Southern Europe, Central Europe, Eastern Europe, Africa and Asia Pacific. Growth is achieved both organically and through the acquisition of companies which supplement existing operations.

Seasonal effects 

Beijer Ref’s sales are seasonally dependent as demand for refrigeration and air conditioning is at its peak during the warm months of the year. It means that demand in the northern hemisphere is at its peak during the second and third quarters whilst demand in the southern hemisphere is at its peak during the first and fourth quarters.

Financial calendar 

•     The Year-End Report for 2017 will be published on 31 January 2018.

•     The Annual Report for 2017 will be published in March 2018.

•     The Interim Report for the first quarter 2018 will be published on 23 April 2018.

•     The Interim Report for the second quarter 2018 will be published on 13 July 2018.

•     The Interim Report for the third quarter 2018 will be published on 22 October 2018. 

Beijer Ref AB (publ) 

Stortorget 8, SE-211 34 Malmö, Sweden

Telephone +46 40-35 89 00

Corporate ID number 556040-8113

This document is a translation of the Swedish language version. In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct.