Bergman & Beving AB (FRA:BLRB) Q2 2025 Earnings Call Highlights: Strong Profit Growth ...

In This Article:

  • EBITA Increase: 12% increase in EBITA.

  • Earnings Per Share: Increased by 12%.

  • Profit-to-Working Capital: Increased by 6 percentage units.

  • Organic Inventory Reduction: SEK180 million reduction compared to the previous year.

  • Revenue Development: Organic decrease of 3%, with a total group level increase of 5% due to acquisitions.

  • Gross Margin: Maintained strong gross margin with positive development.

  • EBIT Increase: 11% increase in EBIT.

  • EBT Increase: 14% increase in EBT.

  • EBITA CAGR: 27% profit improvement.

  • Core Solutions Revenue: SEK334 million, down from SEK346 million last year.

  • Core Solutions EBITA: Increased by 5% to SEK39 million.

  • Safety Technology Revenue Increase: 2% increase.

  • Safety Technology EBITA Increase: 53% increase to SEK29 million.

  • Industrial Equipment Revenue Increase: 13% increase.

  • Industrial Equipment EBITA Increase: 10% increase to SEK55 million.

  • Net Debt-to-EBITDA: Expected to be between 2 and 3 long-term.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bergman & Beving AB (FRA:BLRB) reported a 12% increase in EBITA and a 12% rise in earnings per share, reversing a previous trend of stagnant EPS growth.

  • The company successfully maintained a strong gross margin and reduced inventory levels by SEK180 million organically compared to the previous year.

  • All three divisions of the company reported increased profits, indicating a broad-based improvement across the group.

  • The acquisition strategy is on track, with three acquisitions contributing positively to EBITA growth, including the highly profitable Spraylat and Levypinta.

  • The company has achieved 19 consecutive quarters of profit growth, demonstrating resilience despite challenging market conditions.

Negative Points

  • The market remains tough, particularly in the construction and industrial sectors, with a 3.4% decrease in the number of employees in these sectors in the Nordics.

  • Organic revenue decreased by 3%, and there was a small negative currency effect of 1%, indicating challenges in achieving organic growth.

  • The Safety Technology division, although improved, still operates below the desired EBITA margin of 10%, currently at 8%.

  • The company faces uncertainties in the industrial sector, with no immediate signs of market improvement, impacting future growth prospects.

  • Net debt levels are expected to increase due to acquisitions, with a long-term target of maintaining a net debt-to-EBITDA ratio between 2 and 3.