• Net sales increased by 27 per cent to SEK 3,481.1M (2,741.5).
• Operating profit rose by six per cent to SEK 210.1M (197.8).
• The period’s result increased by eight per cent to SEK 150.4M (139.4) excluding the capital gains. Including the capital gains, the period’s result amounted to SEK 172.4M (177.5).
• Profit per share amounted to SEK 3.42 (3.20) excluding the capital gains. Including the capital gains, profit per share amounted to SEK 3.94 (4.10).
• Share split 2:1 carried out in June.

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 continued its positive trend with an increase in sales and increasing operating profit for the second quarter compared with the corresponding period in the previous year. The sales increase is explained by acquisitions whilst sales for comparable units decreased due to a slowdown in demand in some markets and currency adjustments from the stronger SEK.

Consolidated sales increased by 27 per cent to SEK 3,481.1M (2,741.5) for the first half of the year. Sales for the second quarter rose by 24 per cent to SEK 1,826.3M (1,473.0). The large acquisitions of Toshiba’s operation within air conditioning and heating, as well as United Refrigeration’s refrigeration wholesale operation in France and the United Kingdom, accounted for the increase in sales for the respective period.

Adjusted for currencies and excluding acquisitions, i.e. organic, sales fell by approximately three per cent for the half-year period and by around seven per cent for the second quarter compared with the corresponding periods in 2011. The lower sales volume can mainly be attributed to Central Europe, including Belgium, Holland and Switzerland, which also enjoyed a very strong first half in 2011. Volumes also fell slightly in France, Italy and Spain.

Sales in Southern Africa and Thailand continued to develop positively. Sales in the Nordic countries, the United Kingdom and Eastern Europe were stable.

Together, the acquisitions contributed SEK 825M in sales for the first quarter and SEK 457M for the second quarter. The integration of United Refrigeration’s operations in France and the United Kingdom continue according to the plan. The operations have been restructured, which has resulted in lower expenses. Toshiba’s operation within air conditioning and heating has also developed in line with the expectations. Sales for the Toshiba operation were lower for the first half of 2012 compared with the same period in 2011 which was a strong six months. Compared with the first six months of 2010, sales were higher than for the corresponding period in 2012. Toshiba’s operation has a stronger business cyclical component than G & L Beijer’s other operation.

Results
Consolidated operating profit for the first half of the year increased by six per cent to SEK 210.1M (197.8) for the first half of the year. For the second quarter, operating profit increased by three per cent to SEK 129.0M (125.6). The result improvements are essentially explained by contributions from the acquired operations.

The Group’s financial income/expense amounted to SEK 7.8M (50.3) for the half-year period and to SEK -7.5M (0.3) for the second quarter. Financial income/expense for the six-month period includes capital gains of SEK 22.0M from the divestment of a participation in an associated company, Förvaltnings AB Norra Vallgatan, during the first quarter of 2012. The first quarter of 2011 includes the divestment of shares in Beijer Alma of SEK 51.7M.

Profit before tax amounted to SEK 217.9M (248.1) for the first six months of the year and to SEK 121.5M (125.9) for the second quarter. Profit after tax decreased to SEK 172.4M (177.5) for the half-year period but increased to SEK 93.0M (89.7) for the second quarter. Profit per share amounted to SEK 3.94 (4.10) for the six-month period. Excluding the capital gains, profit per share amounted to SEK 3.42 (3.20).

Other financial information
Consolidated financial expenditure, including acquisitions, amounted to SEK 55.1M (97.8) for the first half of 2012. Liquid funds, including unutilised bank overdraft facilities, were SEK 492.0M (525.7). Shareholders’ equity amounted to SEK 2,402.7M (2,302.2) on 30 June 2012. Net debt was SEK 1,383.9M (372.9). The equity ratio amounted to 43.0 per cent (55.0). The average number of employees during the period was SEK 2,120 (1,817).

Significant events
In January 2012, G & L Beijer acquired the Norwegian company, Ecofrigo AS. 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.

In June, G & L Beijer carried out a share split (2:1) which meant that each share was divided into two shares of the same class. After the split, G & L Beijer’s total number of shares amount to 42,478,230 distributed on 3,306,240 A shares and 39,171,990 B shares. The total number of votes amounts to 72,234,390 after the split.

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.

Financial information
-  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.

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.

The Board of Directors and the Managing Director assure that this Six-Month Report gives a true and fair view of the company’s and the Group’s operations, position and results and describes significant risks and factors of uncertainty which the company and the companies included in the Group are facing.

Malmö, Sweden, 17 July 2012

Peter Jessen Jürgensen, Chairman
Bernt Ingman, Board Member
Anne-Marie Pålsson, Board Member
William Striebe, Board Member
Philippe Delpech, Board Member
Harald Link, Board Member
Joen Magnusson, Board Member, Managing Director

www.beijers.com