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Bufab AB
Interim / Quarterly Report • Jul 11, 2024
2898_ir_2024-07-11_f31ba3f4-1b13-4cfd-b0a8-473cf4af7973.pdf
Interim / Quarterly Report
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Interim report
January – June 2024
Q2
Weaker demand, improved gross margin and stable cash flow. Divestment of manufacturing companies.
- Sales growth 6.0% 12.2%
Operating margin (EBITA), adjusted
Second quarter of 2024
- Net sales declined by -6.0 percent to SEK 2,142 million (2,280). Organic growth was -6.6 percent and order intake was somewhat higher than net sales
- Adjusted operating profit (EBITA) was SEK 261 million (307), corresponding to an operating margin of 12.2 percent (13.5)
- Operating profit (EBITA) was SEK 263 million (319) and the operating margin was 12.3 percent (14.0)
- Earnings per share decreased by 27 percent to SEK 3.94 (5.41)
- Cash flow from operating activities amounted to SEK 427 million (453), corresponding to a cash conversion ratio of 153 percent (136)
- Net debt/EBITDA, adjusted, was 2.8 percent (2.9)
Key figures
January – June 2024
- Net sales declined by -8.1 percent to SEK 4,292 million (4,666). Organic growth was -8.4 percent and order intake was somewhat higher than net sales
- Adjusted operating profit (EBITA) was SEK 520 million (632), corresponding to an operating margin of 12.1 percent (13.5)
- Operating profit (EBITA) decreased by 19 percent to SEK 523 million (642) and the operating margin was 12.2 percent (13.8)
- Earnings per share decreased by 28 percent to SEK 7.76 (10.74)
- Cash flow from operating activities amounted to SEK 686 million (754), corresponding to a cash conversion ratio of 125 percent (105)
Net sales, SEK million
Rolling 12 months
Operating profit (EBITA) adjusted, SEK million
Quarter
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 2,161 | 2,263 | -5 | 4,307 | 4,584 | -6 | 8,326 | 8,602 |
| Net sales | 2,142 | 2,280 | -6 | 4,292 | 4,666 | -8 | 8,305 | 8,680 |
| Gross profit | 639 | 649 | -1 | 1,264 | 1,324 | -5 | 2,434 | 2,494 |
| Gross margin (%) | 29.8 | 28.5 | 29.5 | 28.4 | 29.3 | 28.7 | ||
| Operating expenses | -376 | -331 | 14 | -741 | -682 | 9 | -1,510 | -1,451 |
| Share of net sales (%) | -17.6 | -14.5 | -17.3 | -14.6 | -18.2 | -16.7 | ||
| Operating profit (EBITA) | 263 | 319 | -17 | 523 | 642 | -19 | 924 | 1,043 |
| Operating margin EBITA (%) | 12.3 | 14.0 | 12.2 | 13.8 | 11.1 | 12.0 | ||
| Operating profit (EBITA), adjusted | 261 | 307 | -15 | 520 | 632 | -18 | 1,008 | 1,121 |
| Operating margin EBITA, (%) adjusted | 12.2 | 13.5 | 12.1 | 13.5 | 12.1 | 12.9 | ||
| Operating profit | 246 | 301 | -18 | 489 | 607 | -20 | 855 | 974 |
| Operating margin (%) | 11.5 | 13.2 | 11.4 | 13.0 | 10.3 | 11.2 | ||
| Profit after tax | 149 | 205 | -27 | 294 | 406 | -28 | 462 | 574 |
| Earnings per share, SEK | 3.94 | 5.41 | -27 | 7.76 | 10.74 | -28 | 13.70 | 15.17 |
| Cash flow from operating activities | 427 | 453 | -6 | 686 | 754 | -9 | 1,378 | 1,446 |
| Net debt / EBITDA, adjusted | 2.8 | 2.9 | -3 | - | - | - | - |
CEO's overview
During the second quarter, Bufab reported negative growth, strong gross margin coupled with stable profitability and cash flow. Bufab Lann and Hallborn Metall were divested at the beginning of July as part of our updated strategy.
The organic growth continued to be negative in the second quarter. As in previous quarters, the organic decline in sales was mainly in the construction, bath, kitchen and outdoor recreation sectors, while a positive trend was noted in energy and defence. We also observed continued weak demand from general industry, albeit with indications that a turnaround is in sight.
Sales growth amounted to -6.0 percent in the quarter and organic growth to -6.6 percent, which is an improvement on the preceding quarter. Order intake was slightly higher than net sales.
The work we initiated last year aimed at strengthening our gross margin continues show result, which I am particularly pleased with. The gross margin improved 1.3 percentage points year-on-year due to our focus on enhancing our customer and product mix and developing the added value we deliver to customers, in addition to purchasing savings.
The share of operating expenses increased yearon-year on account of the falling volumes and inflationary effects during the first half of the year. We purposefully continue with cost reduction activities throughout the organisation with the aim of strengthening the operating margin. The activities mainly include staff reductions, but also
reduced overheads. At the same time, we continue to invest in our operations in order to drive growth and improve profitability in the long term. In recent quarters, for example, we have invested in our global sales force, in new warehouses in the Czech Republic and the UK, and in our e-commerce solutions.
The adjusted operating margin was 12.2 percent (13.5), which is stable given the challenging market environment and a strong comparative quarter. All regions reported a stable operating margin except Americas and Asia-Pacific.
Cash flow from operating activities amounted to SEK 427 million (453) for the quarter. Net debt/EBITDA was 2.8 (2.9). We have noted greater M&A activity recently and are evaluating several potential candidates.
In line with our updated strategy, we divested our manufacturing companies Bufab Lann and Hallborn Metall to Arbona Industri at the beginning of July, for a purchase price of SEK 230 million. I am pleased that we have completed the strategic review initiated in December 2023 and I view the divestments as part of efforts to streamline Bufab's offering and as a step towards achieving our updated profitability target.
We will continue to implement our strategy according to which our short-term priorities stand firm: to capture market share, gradually improve our margin and deliver a stronger cash flow. An area we will focus on as part of our strategy is leading the development of sustainability in our industry and continuing to strengthen our customer offering. As part of this, we organised a sustainability day during the quarter for our Swedish customers during which we discussed shared opportunities and challenges when it comes to structuring and maintaining a sustainable supply chain.
In summary, a weaker economy creates favourable conditions for a strong player such as Bufab to take new market shares. This, together with our focused work on strengthening our gross margin and on cost savings, will put us in a strong position once the market rebounds.
Finally, I would like to thank all our customers, partners and employees for your continued support and commitment.
Erik Lundén President and CEO
The Group in brief
Second quarter
Order intake declined to SEK 2,161 million (2,263), but was somewhat higher than net sales. Net sales declined by -6.0 percent to SEK 2,142 million (2,280). Of the total change in sales, 0.6 percent was attributable to currency effects, 0 percent to acquisitions and -6.6 percent to organic growth. As in previous quarters, the organic decline in sales was mainly in the construction, bath, kitchen and outdoor recreation sectors.
The gross margin strengthened year-on-year and amounted to 29.8 percent (28.5). The higher gross margin is the result of focused efforts to improve the customer and product mix, develop the added value to customers, as well as purchasing savings.
The share of operating expenses increased to 17.6 percent (14.5). The increase is largely due to the decline in volumes and inflationary effects, but also to investments aimed at driving growth.
Adjusted operating profit (EBITA) fell to SEK 261 million (307), corresponding to an operating margin of 12.2 percent (13.5). Operating profit (EBITA) fell to SEK 263 million (319), corresponding to an operating margin of 12.3 percent (14.0).
Earnings per share decreased by 27 percent to SEK 3.94 (5.41).
January – June
Order intake declined to SEK 4,307 million (4,584) and was somewhat higher than net sales. Net sales declined by -8.1 percent to SEK 4,292 million (4,666). Of the total growth, 0.3 percent was attributable to currency effects, 0 percent to acquisitions and -8.4 percent to organic growth.
The gross margin strengthened year-on-year and amounted to 29.5 percent (28.4).
The share of operating expenses increased to 17.3 percent (14.6). The increase compared with last year was largely due to the lower volumes, inflationary effects and investments, but also to revaluation of additional purchase considerations, which were SEK +3 million for the period compared with SEK +10 million in the comparison period. Adjusted for the remeasured additional purchase considerations, the share of operating expenses amounted to 17.3 percent (14.8).
Adjusted operating profit (EBITA) declined to SEK 520 million (632), corresponding to an operating margin of 12.1 percent (13.5). Operating profit (EBITA) declined to SEK 523 million (642) and the operating margin was 12.2 percent (13.8).
Earnings per share decreased by 28 percent to SEK 7.76 (10.74).
Financial items and tax
The Group's net financial items totalled SEK -52 million (-36) for the second quarter, of which exchange-rate differences accounted for SEK -1 million (18) and interest rates for SEK -51 million (-44). During the six-month period, net financial items amounted to SEK -104 million (-77), of which exchange-rate differences accounted for SEK -4 million (11) and interest rates for SEK -100 million (-89). The Group's profit after financial items was SEK 194 million (265) for the quarter and SEK 385 (530) for the six-month period.
The decline in net financial items for the quarter compared with the comparative period is primarily attributable to exchange-rate differences.
The tax expense for the quarter was SEK -45 million (-61), resulting in an effective tax rate of 23.2 percent (22.9). The tax expense for the six-month period was SEK -91 million (-125), resulting in an effective tax rate of 23.6 percent (23.5).
Cash flow, working capital and financial position
Cash flow from operating activities amounted to SEK 427 million (453), corresponding to a cash conversion ratio of 154 percent (136). For the six-month period, cash flow from operating activities amounted to SEK 686 million (754), corresponding to a cash conversion ratio of 125 percent (113).
Cash flow from operating activities was lower than in the comparative period, mainly due to lower earnings. Cash flow from changes in working capital remained positive and improved year-on-year.
Working capital as a percentage of net sales was 35.6 percent (41.2). The improvement is a direct result of the Group's goal of unlocking capital tied up in operations.
On 30 June 2024, adjusted net debt totalled SEK 2,747 million (3,497) and the debt/equity ratio was 91 percent (113). The lower net debt is directly attributable to the favourable operating cash flow over the past four quarters.
The key figure net debt/EBITDA, adjusted, was 2.8 (2.9) on 30 June 2024. The key figure improved year-on-year.
Operating cash flow and cash conversion ratio
Net debt/EBITDA, adjusted
Region Europe North & East
- Sales growth 3.7% 11.7%
Operating margin (EBITA)
The region consists of Bufab's operations in Sweden, Finland, Norway, Denmark, Poland, Hungary, Romania, the Baltic States and Slovakia.
Second quarter
Sales growth amounted to -3.7 percent in the quarter and organic growth to -4.2 percent, an improvement on the preceding quarter. In general, the region continued to face a challenging market and demand situation, particularly in Bufab Poland and Bufab Finland. In parallel, Tilka Trading and its operations focusing on the defence industry performed strongly.
The gross margin improved 2.0 percentage points year-on-year due to our focus on developing the added value we deliver to customers, in addition to purchasing savings.
Operating expenses increased year-on-year, largely due to higher costs for current staff. Investments in the sales force have also been made, while staffing levels have been reduced in companies facing weak demand. Operating expenses have also been impacted by a provision made for an anticipated bad debt loss.
Overall, adjusted operating profit decreased by SEK 8 million, yielding an adjusted operating margin of 11.7 percent (12.1). Adjusted for the anticipated bad debt loss, the operating margin was in line with the preceding year.
Net sales, SEK million 0 1,0002,0003,0004,0000 200 400 600 800 1,000 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24
Quarter Rolling 12 months
Key figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 872 | 897 | -3 | 1,725 | 1,838 | -6 | 3,310 | 3,424 |
| Net sales | 867 | 900 | -4 | 1,734 | 1,868 | -7 | 3,295 | 3,429 |
| Gross profit | 246 | 237 | 4 | 482 | 498 | -3 | 903 | 920 |
| Gross margin (%) | 28.4 | 26.4 | 27.8 | 26.7 | 27.4 | 26.8 | ||
| Operating expenses | -145 | -128 | 13 | -288 | -249 | 16 | -519 | -480 |
| Share of net sales (%) | -16.7 | -14.3 | -16.6 | -13.3 | -15.8 | -14.0 | ||
| Operating profit (EBITA) | 101 | 109 | -7 | 194 | 249 | -22 | 384 | 440 |
| Operating margin EBITA (%) | 11.7 | 12.1 | 11.2 | 13.3 | 11.7 | 12.8 | ||
| Operating profit (EBITA), adjusted | 101 | 109 | -7 | 194 | 249 | -22 | 384 | 440 |
| Operating margin EBITA, (%) adjusted | 11.7 | 12.1 | 11.2 | 13.3 | 11.7 | 12.8 |
Operating profit (EBITA) adjusted, SEK million
Region Europe West
The region consists of Bufab's operations in France, the Netherlands, Germany, the Czech Republic, Austria, Spain and Türkiye.
Share of total sales - Sales growth 6.4% 12.4%
Operating margin (EBITA)
Second quarter
Sales growth amounted to -6.4 percent in the quarter and organic growth to -5.1 percent, an improvement on the preceding quarter. In general, the region faced a continued challenging market and demand situation, particularly in Bufab Germany, Jenny I Waltle and Bufab Flos, while the companies in Türkiye, the Czech Republic and France performed better. The market segments showing the weakest development were construction and automotive, while the positive demand trend from defence and aerospace continued.
The gross margin improved 1.5 percentage points year-on-year due to our focus on developing the added value we deliver to customers, in addition to purchasing savings.
Operating expenses increased year-on-year, largely due to higher costs for current staff. Investments in the sales force have also been made, while staffing levels have been reduced in companies facing weak demand.
Overall, adjusted operating profit decreased by SEK 4 million, yielding an adjusted operating margin of 12.4 percent (12.4).
Net sales, SEK million
Key figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 475 | 502 | -5 | 969 | 1,046 | -7 | 1,825 | 1,902 |
| Net sales | 469 | 501 | -6 | 958 | 1,047 | -8 | 1,863 | 1,951 |
| Gross profit | 119 | 120 | -1 | 241 | 254 | -6 | 461 | 474 |
| Gross margin (%) | 25.3 | 23.8 | 25.1 | 24.3 | 24.8 | 24.3 | ||
| Operating expenses | -60 | -57 | 5 | -119 | -115 | 4 | -233 | -229 |
| Share of net sales (%) | -12.9 | -11.5 | -12.4 | -11.0 | -12.5 | -11.7 | ||
| Operating profit (EBITA) | 58 | 62 | -5 | 122 | 139 | -12 | 229 | 245 |
| Operating margin EBITA (%) | 12.4 | 12.4 | 12.8 | 13.3 | 12.3 | 12.6 | ||
| Operating profit (EBITA), adjusted | 58 | 62 | -5 | 122 | 139 | -12 | 229 | 245 |
| Operating margin EBITA, (%) adjusted | 12.4 | 12.4 | 12.8 | 13.3 | 12.3 | 12.6 |
Region Americas
The region comprises Bufab's operations in the US and Mexico.
Share of total sales
Net sales, SEK million
Operating profit (EBITA) adjusted, SEK million
Second quarter
Sales growth amounted to -11.8 percent in the quarter and organic growth to -13.3 percent. In general, the region faced a continued soft market and demand situation, mainly in the mobile home and trailer segment, but also in the automotive segment, which especially impacted Component Solutions Group.
The gross margin was essentially unchanged year-on-year.
Operating expenses increased markedly in the quarter. The increase is primarily explained by items affecting comparability in the comparative quarter, but also by inflationary effects.
Overall, adjusted operating profit decreased by SEK 28 million, yielding an adjusted operating margin of 11.6 percent (19.5).
Key figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 285 | 315 | -10 | 571 | 598 | -5 | 1,065 | 1,092 |
| Net sales | 278 | 315 | -12 | 556 | 629 | -12 | 1,109 | 1,182 |
| Gross profit | 100 | 113 | -12 | 198 | 220 | -10 | 389 | 412 |
| Gross margin (%) | 36.1 | 36.0 | 35.6 | 35.0 | 35.1 | 34.8 | ||
| Operating expenses | -68 | -40 | 68 | -130 | -111 | 17 | -253 | -235 |
| Share of net sales (%) | -24.5 | -12.8 | -23.4 | -17.7 | -22.8 | -19.8 | ||
| Operating profit (EBITA) | 32 | 73 | -56 | 68 | 109 | -38 | 136 | 177 |
| Operating margin EBITA (%) | 11.6 | 23.2 | 12.2 | 17.3 | 12.3 | 15.0 | ||
| Operating profit (EBITA), adjusted | 32 | 61 | -48 | 68 | 106 | -36 | 136 | 174 |
| Operating margin EBITA, (%) adjusted | 11.6 | 19.5 | 12.2 | 16.8 | 12.3 | 14.7 |
Region UK/Ireland
The region comprises Bufab's operations in the UK and Ireland.
Share of total sales
Second quarter
Sales growth amounted to -6.2 percent in the quarter and organic growth to -8.6 percent. The decline is mainly the result of lower market prices, primarily for stainless steel products sold by Apex Stainless Fasteners, but was offset by new market shares gained for TIMCO.
The gross margin improved by 1.7 percentage points year-on-year. The strengthened gross margin was due to an improved customer and product mix, where the strategic rationalisation of customer accounts continued to make a positive contribution also in the second quarter, but also to purchasing savings.
During the quarter, the revaluation of an additional purchase consideration impacted operating expenses by SEK +3.4 million. Adjusted for this, the share of operating expenses amounted to 20.6 percent. The year-on-year increase is partly due to inflationary effects and partly to IT and e-commerce investments.
Overall, adjusted operating profit decreased by SEK 4 million, yielding an adjusted operating margin of 12.7 percent (12.8).
6.2% 13.6%
Sales growth
Operating margin (EBITA)
Rolling 12 months
Net sales, SEK million
Key figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 409 | 434 | -6 | 802 | 860 | -7 | 1,696 | 1,754 |
| Net sales | 415 | 442 | -6 | 813 | 869 | -6 | 1,619 | 1,676 |
| Gross profit | 138 | 139 | -1 | 268 | 267 | 1 | 539 | 537 |
| Gross margin (%) | 33.2 | 31.5 | 33.0 | 30.7 | 33.3 | 32.1 | ||
| Operating expenses | -82 | -82 | -1 | -164 | -150 | 10 | -419 | -405 |
| Share of net sales (%) | -19.7 | -18.7 | -20.2 | -17.2 | -25.9 | -24.1 | ||
| Operating profit (EBITA) | 56 | 57 | -1 | 105 | 117 | -11 | 120 | 133 |
| Operating margin EBITA (%) | 13.6 | 12.8 | 12.9 | 13.5 | 7.4 | 7.9 | ||
| Operating profit (EBITA), adjusted | 53 | 57 | -7 | 101 | 111 | -8 | 204 | 214 |
| Operating margin EBITA, (%) adjusted | 12.7 | 12.8 | 12.5 | 12.7 | 12.6 | 12.8 |
Operating profit (EBITA) adjusted, SEK million
Quarter
Summary CEO's overview Financial performance Financial statements Other information
Region Asia-Pacific
The region consists of Bufab's operations in China, India, Singapore and other countries in Southeast Asia.
Share of total sales
-
6.5% 12.6%
Sales growth
Operating margin (EBITA)
Second quarter
Sales growth amounted to -6.5 percent in the quarter and organic growth to -5.7 percent, which is an improvement on the preceding quarter. China continues to perform positively but has not offset the weaker performance in the rest of the region.
The gross margin was marginally lower than in the comparative period.
Key figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | % | 2024 | 2023 | % | 23/24 | 2023 |
| Order intake | 119 | 115 | 4 | 241 | 242 | -1 | 429 | 431 |
| Net sales | 114 | 122 | -7 | 230 | 253 | -9 | 420 | 443 |
| Gross profit | 34 | 37 | -7 | 71 | 78 | -9 | 130 | 137 |
| Gross margin (%) | 30.2 | 30.4 | 30.9 | 30.9 | 31.0 | 31.0 | ||
| Operating expenses | -20 | -18 | 11 | -38 | -37 | 3 | -75 | -74 |
| Share of net sales (%) | -17.6 | -14.8 | -16.6 | -14.7 | -17.8 | -16.6 | ||
| Operating profit (EBITA) | 14 | 19 | -24 | 33 | 41 | -19 | 56 | 64 |
| Operating margin EBITA (%) | 12.6 | 15.6 | 14.3 | 16.2 | 13.2 | 14.4 | ||
| Operating profit (EBITA), adjusted | 14 | 19 | -24 | 33 | 41 | -19 | 56 | 64 |
| Operating margin EBITA, (%) adjusted | 12.6 | 15.6 | 14.3 | 16.2 | 13.2 | 14.4 |
Operating expenses increased compared with the comparative quarter. The increase is due to inflationary effects and investments in the customer offering.
Overall, adjusted operating profit decreased by SEK 5 million, yielding an adjusted operating margin of 12.6 percent (15.6).
Net sales, SEK million
Quarter Rolling 12 months
Operating profit (EBITA) adjusted, SEK million
Financial statements
Condensed Consolidated Income Statement Statement of Comprehensive Income
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | |
| Net sales | 2,142 | 2,280 | 4,292 | 4,666 | |
| Costs of goods sold | -1,502 | -1,631 | -3,028 | -3,343 | |
| Gross profit | 639 | 649 | 1,264 | 1,324 | |
| Distribution costs | -251 | -235 | -501 | -462 | |
| Administative expenses | -154 | -135 | -294 | -281 | |
| Other operating income and operating expenses | 11 | 22 | 20 | 27 | |
| Operating profit | 246 | 301 | 489 | 607 | |
| Profit/loss from financial items | |||||
| Interest income and similar profit/loss items | 1 | 20 | 4 | 28 | |
| Interest expenses and similar profit/loss items | -53 | -56 | -108 | -105 | |
| Profit after financial items | 194 | 265 | 385 | 530 | |
| Tax on net profit for the period | -45 | -61 | -91 | -125 | |
| Profit after tax | 149 | 205 | 294 | 406 |
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | |
| Profit after tax | 149 | 205 | 294 | 406 | |
| Other comprehensive income | |||||
| Items that may be reclassified subsequently to profit or loss | |||||
| Translation differences / Currency hedging net after tax | -32 | 138 | 90 | 175 | |
| Other comprehensive income after tax | -32 | 138 | 90 | 175 | |
| Total comprehensive income | 117 | 343 | 384 | 581 | |
| Total comprehensive income attributable to: | |||||
| Parent Company shareholders | 117 | 343 | 384 | 581 |
Earnings per share
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK | 2024 | 2023 | 2024 | 2023 | |
| Earnings per share | 3.94 | 5.41 | 7.76 | 10.74 | |
| Weighted number of shares outstanding before dilution, thousands | 37,853 | 37,780 | 37,871 | 37,780 | |
| Diluted earnings per share, SEK | 3.92 | 5.37 | 7.72 | 10.62 | |
| Weighted number of shares outstanding after dilution, thousands | 38,036 | 38,201 | 38,058 | 38,201 |
Condensed Consolidated Balance Sheet
| 30 Jun | |||
|---|---|---|---|
| MSEK | 2024 | 2023 | 2023 |
| Assets | |||
| Fixed assets | |||
| Intangible fixed assets | 3,365 | 3,508 | 3,289 |
| Property plant and equipment | 633 | 727 | 769 |
| Financial assets | 34 | 28 | 32 |
| Total non-current assets | 4,032 | 4,263 | 4,090 |
| Current assets | |||
| Inventories | 2,569 | 3,219 | 2,857 |
| Current receivables | 1,651 | 1,830 | 1,435 |
| Cash and cash equivalents | 212 | 314 | 218 |
| Assets held for sale | 254 | ||
| Total current assets | 4,685 | 5,363 | 4,510 |
| Total assets | 8,717 | 9,626 | 8,600 |
| 30 Jun | |||
|---|---|---|---|
| MSEK | 2024 | 2023 | 2023 |
| Equity and liabilities | |||
| Equity | 3,601 | 3,523 | 3,418 |
| Non-current liabilities | |||
| Non-current liabilities, interest bearing | 3,119 | 3,456 | 3,346 |
| Non-current liabilities, non-interest bearing | 150 | 327 | 201 |
| Total non-current liabilities | 3,269 | 3,783 | 3,547 |
| Current liabilities | |||
| Current liabilities, interest bearing | 329 | 845 | 271 |
| Current liabilities, non-interest bearing | 1,384 | 1,475 | 1,364 |
| Liabilities held for sale | 133 | ||
| Total current liabilities | 1,847 | 2,320 | 1,635 |
| Total equity and liabilities | 8,717 | 9,626 | 8,600 |
Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement
| MSEK | 2024 | 2023 | |
|---|---|---|---|
| Equity at beginning of year | 3,418 | 3,036 | |
| Comprehensive income | |||
| Profit after tax | 294 | 406 | |
| Other comprehensive income | |||
| Items that may be reclassified in profit or loss | |||
| Translation differences / Currency hedging net after tax | 90 | 175 | |
| Total comprehensive income | 383 | 581 | |
| Transactions with shareholders | |||
| Option programme | -11 | 0 | |
| Dividend to shareholders | -189 | -94 | |
| Total transactions with shareholders | -200 | -94 | |
| Equity at end of period | 3,601 | 3,523 |
| 30 Jun | Q2 | Jan-Jun | |||
|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | |
| Operating activities | |||||
| Profit before financial items | 246 | 301 | 489 | 607 | |
| Depreciation and amortization | 74 | 66 | 145 | 133 | |
| Interest and other finance income | - | 20 | 4 | 28 | |
| Interest and other finance expenses | -52 | -56 | -108 | -105 | |
| Other non-cash items | 1 | 9 | 2 | 13 | |
| Income tax paid | -54 | -64 | -108 | -106 | |
| Cash flow from operations | 215 | 276 | 424 | 570 | |
| Changes in working capital | |||||
| Increase (-)/decrease (+) in inventories | 120 | 165 | 363 | 408 | |
| Increase (-)/decrease (+) in operating receivables | -2 | 31 | -298 | -207 | |
| Increase (+)/decrease (-) in operating liabilities | 94 | -19 | 197 | -17 | |
| Cash flow from operating activities | 427 | 453 | 686 | 754 | |
| Investing activities | |||||
| Purchase of intangible assets | -2 | -1 | -4 | -2 | |
| Acquisition of property, plant and equipment | -23 | -29 | -31 | -41 | |
| Company acquisitions including additional purchase considerations | -186 | -632 | -186 | -639 | |
| Cash flow from (-used in) investing activities | -211 | -662 | -221 | -682 | |
| Financing activities | |||||
| Dividend paid | -189 | -94 | -189 | -94 | |
| Option programme | -11 | -10 | -11 | - | |
| Increase (+)/decrease (-) in borrowings | -39 | 328 | -276 | -3 | |
| Cash flow from financing activities | -239 | 224 | -476 | -97 | |
| Cash flow for (-used in) the period | -23 | 15 | -11 | -25 | |
| Cash and cash equivalents at the beginning of the period | 239 | 280 | 218 | 322 | |
| Translation differences | -4 | 19 | 5 | 17 | |
| Cash and cash equivalents at the end of the period | 212 | 314 | 212 | 314 |
The Group's Segment Reporting
| Europe North & East | UK/Ireland | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
| Net sales | 889 | 780 | 853 | 968 | 900 | 760 | 800 | 868 | 867 | Net sales | 421 | 414 | 382 | 427 | 442 | 441 | 366 | 398 | 415 |
| Gross profit | 246 | 211 | 221 | 261 | 237 | 204 | 218 | 236 | 246 | Gross profit | 130 | 125 | 113 | 127 | 139 | 144 | 126 | 131 | 138 |
| Gross margin (%) | 27.7 | 27.1 | 25.9 | 27.0 | 26.4 | 26.8 | 27.2 | 27.2 | 28.4 | Gross margin (%) | 30.9 | 30.2 | 29.6 | 29.9 | 31.5 | 32.8 | 34.5 | 32.8 | 33.2 |
| Operating expenses | -123 | -123 | -119 | -121 | -128 | -116 | -115 | -143 | -145 | Operating expenses | 38 | -33 | -70 | -67 | -82 | -124 | -131 | -82 | -82 |
| Share of net sales (%) | -13.8 | -15.8 | -14.0 | -12.5 | -14.3 | -15.3 | -14.4 | -16.5 | -16.7 | Share of net sales (%) | 9.1 | -8.1 | -18.4 | -15.7 | -18.7 | -28.2 | -35.8 | -20.7 | -19.7 |
| Operating profit (EBITA) | 124 | 88 | 101 | 140 | 109 | 88 | 103 | 92 | 101 | Operating profit (EBITA) | 168 | 92 | 43 | 60 | 57 | 20 | -5 | 48 | 56 |
| Operating margin EBITA (%) | 13.9 | 11.3 | 11.9 | 14.5 | 12.1 | 11.5 | 12.8 | 10.6 | 11.7 | Operating margin EBITA (%) | 40.0 | 22.1 | 11.2 | 14.1 | 12.8 | 4.6 | -1.3 | 12.2 | 13.6 |
| Operating profit (EBITA), adjusted | 124 | 88 | 101 | 140 | 109 | 88 | 103 | 92 | 101 | Operating profit (EBITA), adjusted | 57 | 55 | 43 | 54 | 57 | 60 | 43 | 48 | 53 |
| Operating margin EBITA, (%) adjusted | 13.9 | 11.3 | 11.9 | 14.5 | 12.1 | 11.5 | 12.8 | 10.6 | 11.7 | Operating margin EBITA, (%) adjusted | 13.6 | 13.2 | 11.2 | 12.7 | 12.8 | 13.7 | 11.8 | 12.2 | 12.7 |
| Europe West | Asia-Pacific | ||||||||||||||||||
| MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
| Net sales | 442 | 435 | 425 | 546 | 501 | 475 | 429 | 490 | 469 | Net sales | 119 | 132 | 112 | 131 | 122 | 100 | 90 | 116 | 114 |
| Gross profit | 106 | 106 | 108 | 134 | 120 | 117 | 103 | 123 | 119 | Gross profit | 37 | 41 | 34 | 41 | 37 | 31 | 28 | 37 | 34 |
| Gross margin (%) | 24.0 | 24.4 | 25.5 | 24.6 | 23.8 | 24.6 | 23.9 | 25.1 | 25.3 | Gross margin (%) | 30.9 | 31.0 | 30.5 | 31.3 | 30.4 | 31.3 | 30.9 | 31.5 | 30.2 |
| Operating expenses | -55 | -56 | -60 | -58 | -57 | -57 | -57 | -59 | -60 | Operating expenses | -18 | -20 | -19 | -19 | -18 | -19 | -18 | -18 | -20 |
| Share of net sales (%) | -12.5 | -13.0 | -14.2 | -10.6 | -11.5 | -11.9 | -13.3 | -12.0 | -12.9 | Share of net sales (%) | -14.7 | -15.1 | -17.3 | -14.6 | -14.8 | -18.7 | -19.7 | -15.6 | -17.6 |
| Operating profit (EBITA) | 51 | 50 | 48 | 77 | 62 | 60 | 46 | 64 | 58 | Operating profit (EBITA) | 19 | 21 | 15 | 22 | 19 | 13 | 10 | 19 | 14 |
| Operating margin EBITA (%) | 11.5 | 11.4 | 11.2 | 14.0 | 12.4 | 12.7 | 10.7 | 13.1 | 12.4 | Operating margin EBITA (%) | 16.2 | 15.9 | 13.1 | 16.7 | 15.6 | 12.6 | 11.2 | 16.0 | 12.6 |
| Operating profit (EBITA), adjusted | 51 | 50 | 48 | 77 | 62 | 60 | 46 | 64 | 58 | Operating profit (EBITA), adjusted | 19 | 21 | 15 | 22 | 19 | 13 | 10 | 19 | 14 |
| Operating margin EBITA, (%) adjusted | 11.5 | 11.4 | 11.2 | 14.0 | 12.4 | 12.7 | 10.7 | 13.1 | 12.4 | Operating margin EBITA, (%) adjusted | 16.2 | 15.9 | 13.1 | 16.7 | 15.6 | 12.6 | 11.2 | 16.0 | 12.6 |
| Americas | Group | ||||||||||||||||||
| MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | MSEK | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
| Net sales | 370 | 360 | 299 | 315 | 315 | 295 | 258 | 278 | 278 | Net sales | 2,241 | 2,122 | 2,074 | 2,386 | 2,280 | 2,071 | 1,943 | 2,149 | 2,142 |
| Gross profit | 123 | 113 | 98 | 107 | 113 | 101 | 91 | 98 | 100 | Gross profit | 645 | 601 | 583 | 675 | 649 | 601 | 569 | 625 | 639 |
| Gross margin (%) | 33.4 | 31.2 | 32.9 | 33.9 | 36.0 | 34.2 | 35.1 | 35.2 | 36.1 | Gross margin (%) | 28.4 | 28.3 | 28.1 | 28.3 | 28.5 | 29.0 | 29.3 | 29.1 | 29.8 |
| Operating expenses | -245 | -95 | -61 | -71 | -40 | -61 | -62 | -62 | -68 | Operating expenses | -411 | -329 | -341 | -351 | -331 | -381 | -388 | -365 | -376 |
| Share of net sales (%) | -66.2 | -26.3 | -20.3 | -22.5 | -12.8 | -20.7 | -24.1 | -22.3 | -24.5 | Share of net sales (%) | -18.1 | -15.5 | -16.4 | -14.7 | -14.5 | -18.4 | -20.0 | -17.0 | -17.6 |
| Operating profit (EBITA) | -121 | 18 | 38 | 36 | 73 | 40 | 28 | 36 | 32 | Operating profit (EBITA) | 233 | 272 | 242 | 323 | 319 | 220 | 181 | 259 | 263 |
| Operating margin EBITA (%) | -32.8 | 5.0 | 12.6 | 11.4 | 23.2 | 13.4 | 11.0 | 12.9 | 11.6 | Operating margin EBITA (%) | 10.3 | 12.8 | 11.7 | 13.5 | 14.0 | 10.6 | 9.3 | 12.1 | 12.3 |
| Operating profit (EBITA), adjusted | 69 | 48 | 35 | 44 | 61 | 40 | 28 | 36 | 32 | Operating profit (EBITA), adjusted | 314 | 274 | 239 | 325 | 307 | 260 | 229 | 259 | 261 |
| Operating margin EBITA, (%) adjusted | 18.5 | 13.3 | 11.6 | 14.0 | 19.4 | 13.4 | 11.0 | 12.9 | 11.6 | Operating margin EBITA, (%) adjusted | 14.0 | 12.9 | 11.5 | 13.6 | 13.5 | 12.6 | 11.8 | 12.1 | 12.2 |
Consolidated Key Figures
| Q2 | ∆ | Jan-Jun | ∆ | LTM | Full-year | |||
|---|---|---|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 | 23/24 | 2023 | ||
| Order intake | 2,161 | 2,263 | -5% | 4,307 | 4,584 | -6% | 8,326 | 8,602 |
| Net sales | 2,142 | 2,280 | -6% | 4,292 | 4,666 | -8% | 8,305 | 8,680 |
| Gross profit | 639 | 649 | -1% | 1,264 | 1,324 | -5% | 2,434 | 2,494 |
| EBITDA | 321 | 367 -13% | 633 | 738 -14% | 1,147 | 1,252 | ||
| EBITDA, adjusted | 278 | 332 -16% | 551 | 668 -18% | 979 | 1,097 | ||
| Operating profit (EBITA) | 263 | 319 -17% | 523 | 642 -19% | 924 | 1,043 | ||
| Operating profit (EBITA), adjusted | 261 | 307 -15% | 520 | 632 -18% | 1,008 | 1,121 | ||
| Operating profit | 246 | 301 -18% | 489 | 607 -20% | 855 | 974 | ||
| Profit after tax | 149 | 205 -27% | 294 | 406 -28% | 462 | 574 | ||
| Gross margin | 29.8% | 28.5% | 29.5% | 28.4% | 29.3% | 28.7% | ||
| Operating margin EBITA | 12.3% | 14.0% | 12.2% | 13.8% | 11.1% | 12.0% | ||
| Operating margin EBITA, adjusted | 12.2% | 13.5% | 12.1% | 13.5% | 12.1% | 12.9% | ||
| Operating margin | 11.5% | 13.2% | 11.4% | 13.0% | 10.3% | 11.2% | ||
| Net margin | 7.0% | 9.0% | 6.8% | 8.7% | 5.6% | 6.6% | ||
| Net debt, SEK million | 3,282 | 3,987 -18% | ||||||
| Net debt, adjusted, SEK million | 2,747 | 3,497 -21% | ||||||
| Debt/equity ratio, (%) | 91 | 113 -19% | ||||||
| Net debt / EBITDA, adjusted | 2.8 | 2.9 | -3% | |||||
| Working capital, SEK million | 3,048 | 3,648 -16% | ||||||
| Average working capital, SEK million | 3,149 | 3,652 | ||||||
| Working capital in relation to net sales, (%) |
36.7 | 41.2 | ||||||
| Solidity (%) | 41 | 37 | ||||||
| Return on capital employed (%) | 13.7 | 15.5 | ||||||
| Cash flow from operating activities | 427 | 453 | -6% | |||||
| Earnings per share, SEK | 3.94 | 5.41 -27% | 7.76 | 10.74 -28% |
| Summary | CEO's overview | Financial performance | Financial statements | Other information |
|---|---|---|---|---|
Condensed Parent Company Income Statement Condensed Parent Company Balance Sheet
| Q2 | ||||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Administative expenses | -4 | -5 | -10 | -10 |
| Other operating revenue | 2 | 3 | 5 | 5 |
| Operating profit | -2 | -2 | -5 | -5 |
| Profit/loss from financial items | 190 | 150 | 190 | 150 |
| Interest income and similar profit/loss items | 0 | 0 | 0 | 0 |
| Interest expenses and similar profit/loss items | -2 | -0 | -2 | -0 |
| Profit after financial items | 186 | 148 | 183 | 145 |
| Appropriations | - | - | - | - |
| Tax on net profit for the period | - | - | - | - |
| Profit after tax | 186 | 148 | 183 | 145 |
| MSEK Assets Fixed assets Financial assets |
2024 845 |
2023 | 2023 |
|---|---|---|---|
| Investments in group companies | 845 | 845 | |
| Other assets | |||
| Other non-current receivables | 1 | - | 1 |
| Total non-current assets | 846 | 845 | 846 |
| Current assets | |||
| Receivables from Group companies | 554 | 369 | 372 |
| Other current receivables | 14 | 22 | 4 |
| Cash and cash equivalents | - | - | - |
| Total current assets | 568 | 391 | 376 |
| Total assets | 1,414 | 1,236 | 1,222 |
| 30 Jun | 31 Dec | ||
| MSEK | 2024 | 2023 | 2023 |
| Equity and liabilities | |||
| Equity | 1,099 | 1,124 | 1,116 |
| Untaxed reserves | 97 | 94 | 97 |
| Non-current liabilities | |||
| Other non-current liabilities | 1 | - | 1 |
| Total non-current liabilities | 1 | - | 1 |
| Current liabilities | |||
| Trade payables | 2 | -0 | 1 |
| Other current liabilities | 215 | 18 | 8 |
| Total current liabilities | 217 | 18 | 8 |
| Total equity and liabilities | 1,414 | 1,236 | 1,222 |
Other information
Accounting policies
This interim report was prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act, Chapter 9 and the Swedish Financial Reporting Board's recommendation RFR 2. The accounting policies applied correspond to the accounting policies and measurement principles presented in the 2023 Annual Report. The 2023 Annual Report is available at www.bufabgroup.com
Assets held for sale
Following agreements to divest two companies in the second quarter, these entities have been classified as Assets held for sale. Assets and related liabilities are classified as held for sale when their carrying amount will principally be recovered through a sale transaction and a such a transaction is considered highly likely. They are recognised at the lower of carrying amount and fair value less distribution costs if their carrying amount will be principally recovered through a sale transaction rather than through their continuing use.
Risks and risk management
Exposure to risk is a natural part of business activity, and this is reflected in Bufab's approach to risk management. Risk management aims to identify and prevent risks and to limit any loss or damage from these risks. The main risks to which the Group is exposed relate to the impact of the economy on demand. For further information regarding risks and risk management, see Note 3 of the 2023 Annual Report.
Seasonal variations
Bufab has no significant seasonal variation in its sales, but sales over the year vary based on the number of production days in each quarter for customers.
Related-party transactions
No related-party transactions occurred during the year, except for the payment of the fee to the Board of Directors, remuneration of the President and senior executives, and new subscription for call options within the framework of the long-term share-based incentive programme adopted at the Annual General Meeting under the terms outlined in more detail below. Further, the redemption of the long-term share-based incentive programme adopted at the 2020 Annual General Meeting was implemented on the terms contained in the 2023 Annual Report.
Acquisitions
Acquisitions made during 2022–2024:
| Date | Net sales* | Employees | |||
|---|---|---|---|---|---|
| Pajo-Bolte A/S | 14 Mar 2022 | 190 | 40 | ||
| TI Midwood & Co Ltd. | 21 Mar 2022 | 730 | 187 | ||
| CDA Polska S.p.z.o.o | 21 Apr 2022 | 93 | 47 | ||
| *Estimated annual net sales at the date of acquisition |
Additional purchase considerations
The Group's liabilities for conditional considerations additional purchase considerations attributable to acquisitions are measured at fair value. These items are recognised at fair value in the balance sheet with changes in value recognised in profit or loss. Total recognised liabilities for additional purchase considerations amounted to SEK 105 million at 30 June 2024 (215), of which SEK 10 million (143) was recognised as Noncurrent liabilities, non-interest-bearing and SEK 95 million (72) was recognised as Current liabilities, non-interest-bearing in the consolidated balance sheet. The reported additional purchase considerations are included – according to the Group's definition – in the amounts for "net indebtedness" and "net debt, adjusted" from the time when they are finally calculated until they are paid out.
Significant events
During the second quarter, Bufab AB signed an agreement to divest its manufacturing companies Bufab Lann AB and Hallborn Metall AB to Arbona Industri AB for a purchase price of SEK 230 million on a cash and debt-free basis. The divestment is a result of the strategic review previously communicated by the company and aims to maximize the value for Bufab's shareholders. During the 2023 financial year, the combined net sales for Lann and Hallborn amounted to approximately 5 percent of the Bufab Group's total net sales. The transaction was finalised in the third quarter.
Employees
The number of employees in the Group at 30 June 2024 amounted to 1,773 (1,850).
Contingent liabilities and collaterals
No additional significant changes were made to the Company's contingent liabilities during the quarter.
Dividend
The 2024 Annual General Meeting resolved, in accordance with the Board's proposal, to pay a dividend of SEK 5.00 (4.75) per share for the 2023 financial year, corresponding to a total dividend of approximately SEK 190 million (180).
Audit review
This interim report has not been reviewed by the Company's auditors.
Signatures
The Board of Directors and CEO assure that the six-month report provides a fair view of the Parent Company's and the Group's operations, financial position and profits, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.
Värnamo, 11 July 2024
Bengt Liljedahl
Chairman of the Board
| Hans Björstrand Board member |
Per-Arne Blomquist Board member |
|---|---|
| Anna Liljedahl | Eva Nilsagård |
| Board member | Board member |
| Bertil Persson | Erik Lundén |
| Board member | President and CEO |
Definitions of key figures
Gross margin, %
Gross profit as a percentage of net sales for the period
EBITDA Operating profit before depreciation, amortisation and impairment
EBITDA, adjusted
Operating profit before depreciation, amortisation and impairment, less amortisation on right-of-use assets according to IFRS 16 Leases. This key figure is intended to present a comparable EBITDA as though IAS 17 continued to be applied.
Operating profit (EBITA) Gross profit less operating expenses.
Net debt
Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, calculated at the end of the period
Net debt, adjusted
Interest-bearing liabilities, excluding lease liabilities according to IFRS 16, less cash and cash equivalents and interest-bearing assets, calculated at the end of the period
Debt/equity ratio, % Net debt divided by equity, calculated at the end of the period
Net debt/EBITDA, adjusted Net debt, adjusted, at the end of the period divided by EBITDA, adjusted, in the last twelve months
Operating expenses
Total distribution costs, administrative expenses, other operating income/expenses excluding depreciation, amortisation and impairment of acquisition-related intangible assets
Working capital
Total current assets less cash and cash equivalents less current non-interest-bearing liabilities, calculated at the end of the period
Working capital in relation to net sales, % Working capital as a percentage of net sales in the last twelve months
Equity/assets ratio, % Equity as a percentage of total assets, calculated at the end of the period.
Return on capital employed (ROCE), % Profit after financial items plus interest expenses as a percentage of average equity and average interest-bearing liabilities.
Cash conversion Cash flow from operating activities divided by EBITDA, adjusted
Earnings per share
Profit after tax for the period divided by the average number of common shares
Alternative performance measures not defined in accordance with IFRS
Bufab uses certain performance measures not defined in the rules for financial reporting adopted by Bufab. The purpose of these performance measures is to provide a better understanding of the performance of the operations. It should be pointed out that these alternative performance measures, as they are defined, are not fully comparable with other companies' performance measures with the same name.
Organic growth
Bufab has operations in many countries with different currencies, it is therefore essential to provide an understanding of the company's performance without currency effects when translating foreign subsidiaries. In addition, Bufab has an important strategic objective in carrying out value-generating acquisitions. For these reasons, growth is also recognised excluding currency effects when translating foreign subsidiaries and excluding acquired operations within the term Organic growth. This performance measure is expressed in percentage points of last year's net sales.
| 2024 | Q2 | |||||
|---|---|---|---|---|---|---|
| Group Europe North & East | Europe West | Americas | UK/Ireland | Asia-Pacific | ||
| Organic growth | -6.6 | -4.2 | -5.1 | -13.3 | -8.6 | -5.7 |
| Currency translation effects | 0.6 | 0.5 | -1.3 | -0.2 | 2.4 | -0.8 |
| Acquisitions | - | - | - | - | - | - |
| Recognised growth | -6.0 | -3.7 | -6.4 | -11.8 | -6.2 | -6.5 |
| 2024 | Jan-Jun | |||||||
|---|---|---|---|---|---|---|---|---|
| Group Europe North & East | Europe West | Americas | UK/Ireland | Asia-Pacific | ||||
| Organic growth | -8.4 | -8.0 | -7.2 | -10.1 | -9.6 | -7.0 | ||
| Currency translation effects | 0.3 | 0.8 | -1.2 | -1.6 | 3.2 | -2.9 | ||
| Acquisitions | - | - | - | - | - | - | ||
| Recognised growth | -8.1 | -7.2 | -8.4 | -11.7 | -6.4 | -9.9 |
EBITDA
EBITDA is an expression of operating profit before depreciation, amortisation and impairment. The performance measure is defined below.
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Operating profit | 246 | 301 | 489 | 607 |
| Depreciation and amortization | 73 | 66 | 144 | 131 |
| EBITDA | 321 | 367 | 633 | 738 |
EBITDA, adjusted
The performance measure EBITDA, adjusted, is an expression of operating profit before depreciation, amortisation and impairment, less amortisation on right-of-use assets and interest expenses on lease liabilities according to IFRS 16. The performance measure is defined below.
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Operating profit | 246 | 301 | 489 | 607 |
| Depreciation and amortization | 73 | 66 | 144 | 131 |
| Less: amortisation on right-of-use assets according to IFRS 16 |
-38 | -32 | -73 | -63 |
| Less: interest expenses on lease liabilities according to IFRS 16 |
-5 | -4 | -9 | -7 |
| EBITDA, adjusted | 278 | 332 | 551 | 668 |
19
EBITA
Bufab's growth strategy includes the acquisition of companies. For the purpose of illustrating the underlying operation's performance, management has chosen to monitor EBITA (operating profit before depreciation, amortisation and impairment of acquired intangible assets). The performance measure is defined below.
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Operating profit | 246 | 301 | 489 | 607 |
| Depreciation and amortisation of | ||||
| acquired intangible assets | 17 | 17 | 34 | 34 |
| EBITA | 263 | 319 | 523 | 642 |
EBITA, adjusted
The key figure Operating profit (EBITA) adjusted is an expression of the operating profit excluding items affecting comparability, which include but are not limited to restructuring costs, remeasurement of additional purchase considerations, and gains and losses in conjunction with divestment of operations.
Operating expenses
Operating expenses is an expression of operating expenses before depreciation, amortisation and impairment of acquired intangible assets. The performance measure is defined below.
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2024 | 2023 |
| Distribution costs | -251 | -235 | -501 | -462 |
| Administative expenses | -154 | -135 | -294 | -281 |
| Other operating income and operating expenses |
11 | 22 | 20 | 27 |
| Depreciation and amortisation of | ||||
| acquired intangible assets | 17 | 17 | 34 | 34 |
| Operating expenses | -376 | -331 | -741 | -682 |
Working capital
Because Bufab is a trading company, working capital represents a large share of the balance sheet's value. In order to optimise the company's cash generation, management focuses on the local company's development, and thereby the entire Group's development, of working capital as it is defined below.
| 30 Jun | ||
|---|---|---|
| MSEK | 2024 | 2023 |
| Current assets | 4,550 | 5,363 |
| Less: cash and cash equivalents | -212 | -314 |
| Less: current non-interest-bearing liabilities excluding | ||
| liabilities for additional purchase prices | -1,290 | -1,401 |
| Working capital on the balance-sheet date | 3,048 | 3,648 |
Net debt
Net debt is an expression of how large the financial borrowing is in the company in absolute figures after deductions for cash and cash equivalents. The performance measure is defined below.
| 30 Jun | ||
|---|---|---|
| MSEK | 2024 | 2023 |
| Non-current liabilities, interest bearing | 3,153 | 3,456 |
| Current liabilities, interest bearing | 340 | 845 |
| Less: cash and cash equivalents | -212 | -314 |
| Less: other interest-bearing receivables | - | - |
| Net debt on balance-sheet date | 3,282 | 3,987 |
Net debt, adjusted
Net debt, adjusted, is an expression of how large the financial borrowing is in the company in absolute figures after deductions for lease liabilities according to IFRS 16 and cash and cash equivalents. The performance measure is defined below.
| 30 Jun | ||
|---|---|---|
| MSEK | 2024 | 2023 |
| Non-current liabilities, interest bearing | 3,153 | 3,456 |
| Current liabilities, interest bearing | 340 | 845 |
| Less: lease liabilities according to IFRS 16 | -535 | -490 |
| Less: cash and cash equivalents | -212 | -314 |
| Less: other interest-bearing receivables | - | - |
| Net debt, adjusted, on the balance-sheet date | 2,747 | 3,497 |
Return on capital employed
Return on capital employed is an expression of profitability after taking into account the amount of capital utilised. The performance measure is defined below.
| 30 Jun | ||
|---|---|---|
| MSEK | 2024 | 2023 |
| Result after financial items L12M | 611 | 934 |
| Interest expense | -258 | -263 |
| Average shareholder´s equity | 3,535 | 3,175 |
| Average interest-bearing liabilities | 3,645 | 4,079 |
| Return on capital employed | 13.7% | 15.5% |
Information and addresses
Conference call
A conference call will be held on 11 July 2024 at 10:00 a.m. CEST. Erik Lundén, President and CEO, and Pär Ihrskog, CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link: Click here to join the meeting and use the "Raise Your Hand" function during the Q&A session.
Calendar
Interim Report Q3, 2024: 24 October 2024 Year-end report Q4 2024: 6 February 2025
Contact
Erik Lundén Pär Ihrskog President and CEO CFO +46 370 69 69 00 +46 370 69 69 00 [email protected] [email protected]
Bufab AB (publ) Box 2266 SE-331 02, Värnamo, Sweden Corp. Reg. No. 556685-6240 Phone: +46 370 69 69 00 www.bufabgroup.com
This information is such that Bufab AB (publ) is obliged to disclose in accordance with the EU's Market Abuse Regulation. The information was submitted for publication by the aforementioned contacts on 11 July 2024 at 7:30 a.m. CEST.
Countries where Bufab has operations
About Bufab
Bufab is a trading company that offers its customers a fullservice solution as a Supply Chain Partner for sourcing, quality control, sustainability and logistics for C-Parts.
Bufab was founded in 1977 in Småland, Sweden, and is an international Group that currently consists of more than 50 companies. The Group has 1,800 employees in about 28 countries and annual sales in 2023 amounted to SEK 8.7 billion. The share has been listed on Nasdaq Stockholm since 2014. Please visit www.bufabgroup.com for more information.
Sister companies
