- Net sales increased by 30 per cent to SEK 1,654.8M (1,268.5).

- Operating profit rose by 12 per cent to SEK 81.1M (72.3).

- Net profit for the period excluding capital gain increased by 15 per cent to SEK 57.4M (49.7). Including the capital gain, net profit for the period amounted to SEK 79.3M (87.8).

- Profit per share excluding the capital gain increased to SEK 2.60 (2.25). Including the capital gain, profit per share amounted to SEK 3.64 (4.05).

- Acquisition of the Norwegian company, Ecofrigo.

- Divestment of a participation in an associated company and strengthened financial position.

G & L Beijer is a technology-oriented trading Group which, through a combination of added-value agency products and products of the company’s own development, offers competitive solutions within refrigeration and air conditioning.

Sales
G & L Beijer reported continued growth with increased sales and increased operating profit for the first quarter compared with the same period in the previous year. The out­come is positive taking into account the global economic uncer­tainty and the fact that the first quarter of 2011 was stronger than normal. The seasonal variation in sales and results has also been increased with the acquisition of Toshiba’s operation within air conditioning and heating. During a normal year, the second and third quarters are stronger than the first and fourth quarters.

Consolidated sales increased by 30 per cent to SEK 1,654.8M (1,268.5) for the first quarter. Organic growth amounted to three per cent. The large acquisitions of Toshiba’s operation within air conditioning and heating, and United Refrigeration’s refrigeration wholesale operations in France and the United Kingdom, accounted for the majority of the sales increase.

The organic growth is mainly explained by a positive trend in the Nordic countries. The operations in southern
Africa and Thailand also reported good growth. Sales in the United Kingdom increased slightly whilst the picture in southern Europe was more fragmented. For example, sales in France were stable, whilst sales in Italy and Spain were weaker. In Central Europe, including Belgium, Holland and Switzerland sales fell compared with a very strong period in 2011. Eastern Europe reported subdued sales.

All in all, the acquisitions contributed sales of SEK 348M for the first quarter. The integration of United Refrigeration’s operations in France and the United Kingdom are proceeding in accordance with the plan. These operations have been restructured, which has resulted in lower overhead costs. This also applies for the Toshiba business within air conditioning and heating, which has developed in line with forecasts. Sales for the Toshiba operation were lower compared with the same period in 2011 which was a strong quarter. Compared with the first quarter of 2010, sales were higher than for the corresponding quarter in 2012. Toshiba’s operation has both a stronger seasonal pattern and a more business cyclical component than G & L Beijer’s other operation.

Results
Consolidated operating profit rose by 12 per cent to SEK 81.1M (72.3) for the first quarter. The result improvement is essentially explained by contributions from the acquired operations.

The Group’s financial income/expense amounted to SEK 15.3M (50.0). Financial income/expense includes capital gain of SEK 22.0M from the divestment of a participation in the associated company, Förvaltnings AB Norra Vall­gatan, during the first quarter of 2012 and the divestment of shares in Beijer Alma amounting to SEK 51.7M for the first quarter of 2011.

Profit before taxes amounted to SEK 96.4M (122.3). Profit after tax amounted to SEK 79.3M (87.8) and adjusted for one-time items it increased to SEK 57.4M (49.7). Profit per share was SEK 3.64 (4.05). Excluding the capital gain, profit per share increased by 16 per cent to SEK 2.60(2.25).

Other financial information
Consolidated capital expenditure, including acquisitions, amounted to SEK 39.7M (88.4) for the first quarter of 2012. Liquid funds, including unutilised bank overdraft facilities, were SEK 751.1M (717.0). The settlement from the divestment of a participation in an associated company has been paid in April 2012 which will strengthen liquidity and the Group’s financial position. Shareholders’ equity amounted to SEK 2,479.4M (2,322.2). Net debt was SEK 1,071.6M (143.6) at the turn of the quarter and SEK 1,142,1M at the latest year end. The equity ratio amounted to 47.1 per cent (59.8). The average number of employees during the period was 2,093 (1,823).

Significant events
In January 2012, G & L Beijer acquired the Norwegian company, Ecofrigo. The company reports annual sales of
approximately SEK 35M and has six employees. Ecofrigo is a project-oriented refrigeration distribution company which mainly operates within the planning and distribution of environment-friendly chillers and refrigerants. The acquisition complements G & L Beijer’s existing operation in Norway both geographically and product wise. Ecofrigo is included in G & L Beijer’s accounts from January 2012.

Risk assessment
The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operations are dependent on the general economic trend, especially in Europe, which controls the demand for G & L Beijer’s products and services. Acquisitions are normally linked with risks such as, for example, staff defection. Other operating risks, such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, depen­dence on individuals, etc., are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operations, G & L Beijer is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group. For further information, please see the G & L Beijer Annual Report for 2011, page 38.

Financial information
-  The Six-Month Report will be published on 17 July 2012.
-  The Nine-Month Report will be published on 19 October 2012.
-  The Year-End Report for 2012 will be published in February 2013.
-  The Annual Report for 2012 will be published in April 2013.

Malmö, 25 April 2012
G & L Beijer AB (publ)
Joen Magnusson, Managing Director
For further information, please contact:
Joen Magnusson, CEO
switchboard +46 40-35 89 00, mobile +46 709-26 50 91
Jonas Lindqvist, CFO
switchboard 040-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of an examination by the company’s auditors.

Accounting principles
This interim report has been prepared in accordance with IAS 34, the Annual Accounts Act and RFR 2.
G & L Beijer AB continues to apply the same reporting principles and valuation methods as those described in the latest Annual Report.
www.beijers.com