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G & L Beijer Nine-Month Report 2013

Net sales amounted to SEK 5,006.1M (5,215.0).

Operating profit before one-time items amounted to SEK 313.0M (331.2). Including one-time items, profit for the first three quarters of 2013 was SEK 278.8M.

Net profit for the period excluding one-time items amounted to SEK 208.0M (234.3). Including one-time items, net profit for the period was SEK 183.0M (256.3).

Profit per share excluding one-time items amounted to SEK 4.72 (5.34) and to SEK 4.13 (5.86) including one-time items.

Strong third quarter with a six per cent growth in sales compared with the corresponding quarter in the previous year. Operating profit increased by 20 per cent for the same period.

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.

G & L Beijer enjoyed a strong development during the third quarter of 2013, both when compared with the corresponding quarter in the previous year and with the previous quarters of the current year. The third quarter of 2013 was the Group’s best individual quarter so far with regard to both sales and results for the current operation.

Accumulated, consolidated sales are currently four per cent lower than for the corresponding period in the previous year, SEK 5,006.1M (5,215.0). When adjusted for currency effects as a result of the strong SEK, sales were unchanged compared with the same period in the previous year.

Sales for the third quarter increased by approximately six per cent to SEK 1,830.4M (1,733.9). Currency effects affected sales marginally during the period. The warm weather in Europe during the summer favoured Group sales. The increased sales for the third quarter broke a negative trend of five quarters, characterised by weak demand in Europe.

The increase for the quarter comprised all regions and virtually all countries in which the Group operates. The Nordic countries reported strong development as did the United Kingdom and Ireland. Southern and eastern Europe have stabilised and also increased their sales. In central Europe sales turned and showed growth. As earlier in the year, Southern Africa and Asia continued to enjoy strong volume growth.  

Consolidated operating profit excluding one-time items of SEK 34.2M amounted to SEK 313.0M (331.2) for the nine-month period. Including one-time items, operating profit was SEK 278.8M for 2013. Operating profit for the third quarter increased by 21 per cent to SEK 146.7M (121.1) compared with the corresponding period in the previous year. The improved result for the third quarter is explained by increased sales volumes and positive effects from the structural measures initiated during the second quarter. The measures, which generate gradual effects, are expected to produce total annual savings of approximately SEK 25M.

The Group’s financial income/expense was SEK -23.8M (-2.3) for the first nine months. Financial income/expense in 2012 included a capital gain of SEK 22.0M from the divestment of a participation in an associated company. Financial income/expense for the third quarter was SEK -8.8M (-10.1). Profit before tax amounted to SEK 255.0M (328.9) for the first three quarters and to SEK 137.9M (111.0) for the third quarter. Profit after tax was SEK 183.0M (256.3) for the nine-month period and SEK 100.2M (83.9) for the third quarter. Profit per share amounted to SEK 4.13 (5.86) for the nine-month period. Excluding one-time items, profit per share was SEK 4.72 (5.34) for the same period.

Other financial information
Consolidated capital expenditure, including acqui­sitions, amounted to SEK 41.2M (69.1) for the first
three quarters. Liquid funds, including unutilised bank overdraft facilities, were SEK 513.1M (469.5) on 30 September 2013. Shareholders’ equity amounted to SEK 2,305.1M (2,340.4). The net debt was SEK 1,302.2M (1,324.4). The equity ratio amounted to 44.0 per cent (44.3). The average number of employees during the period was 2,119 (2,127).

Significant events
In April, G & L Beijer acquired the Danish refrigeration wholesaler, FK Teknik, which reported sales of approximately SEK 32M in 2012 and showed good profita­bility. The company, founded in 1956, enjoys a very good reputation in the market. FK Teknik has five employees. The acquisition is a step forward in a consolidation of the Danish market. G & L Beijer already has a strong position through its existing operation in Denmark. The acquisition is deemed to have a marginal positive effect on G & L Beijer’s profit per share. FK Teknik is included in G & L Beijer’s accounts from 1 April 2013.

In June, the Board of Directors appointed Per Bertland as the new Managing Director and CEO of G & L Beijer. Per Bertland took up his duties on 1 July 2013. He has worked in different functions within the G & L Beijer Group since 1990. He has been Head of the Beijer Ref business area and a Member of the Executive Management.

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, see G & L Beijer’s Annual Report.

Financial information
- The Year-End Report for 2013 will be published in February 2014.
- The Annual Report for 2013 will be published in April 2014.

Malmö, 18 October 2013
G & L Beijer AB (publ)
Per Bertland, CEO

For further information, please contact:
Per Bertland, CEO
switchboard +46 40 35 89 00, mobile +46 705 98 13 73
Jonas Lindqvist, CFO
switchboard +46 40 35 89 00, mobile +46 705 90 89 04