In This Article:
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Revenue Increase: 6% increase in turnover, primarily due to acquisitions.
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EBITA Growth: 10% increase, driven by acquisitions.
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EBITA Margin: Improved to 9.6% from 9.3% in the comparable quarter.
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Earnings Per Share (EPS): Increased to SEK7.55 from SEK7.15 on a rolling 12-month basis.
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Profitability Measure: Profit of working capital increased by 6% units, measured on a rolling 12-month basis.
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Acquisitions: Four acquisitions in Q3, contributing to a total of SEK385 million in acquired revenue for the fiscal year.
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Gross Margin: Slight decrease due to one-off items and discontinued operations.
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Cash Flow from Operating Activities: Reached an all-time high, driven by stronger profitability and lower working capital.
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Net Debt: Increased by roughly SEK1 million despite SEK263 million in acquisitions, supported by strong cash flow.
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Credit Facility: Increased by SEK500 million to a total of SEK2.5 billion.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bergman & Beving AB (FRA:BLRB) reported a 6% increase in turnover for Q3, primarily driven by acquisitions.
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The company achieved a 10% increase in EBITA, with a continuous improvement in EBITA margins, now at 9.6%.
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Earnings per share increased to SEK7.55, up from SEK7.15 the previous year.
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Bergman & Beving AB has successfully completed four acquisitions in the quarter, contributing to their growth strategy.
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The company has maintained 20 consecutive quarters of increased profits, demonstrating consistent financial performance.
Negative Points
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The market remains sluggish, with a 3% decline in the construction and industrial sectors in the Nordic region.
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Gross margin saw a slight decrease due to one-off items and discontinued operations in Asia.
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Organic growth was only 5%, reflecting the challenging market conditions.
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The company faces challenges in reaching its SEK500 million EBIT target without market improvement.
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Inventory levels increased due to seasonality, impacting cash flow despite efforts to reduce stock.
Q & A Highlights
Q: Can you discuss the impact of non-recurring items on the underlying margins in the segments? A: Peter Schoen, CFO, mentioned that a large portion of the reevaluation is from construction-related acquisitions. The buybacks of stock affected the results by a couple of million SEK, and the divestment of Asian operations also impacted by a few million SEK.
Q: Are there any plans for further structural divestments following the recent changes? A: Magnus Soederlind, CEO, stated that while they continuously evaluate structural changes, there are no specific plans for further divestments at this time. The company has historically made several structural adjustments and will continue to assess opportunities.