Quarterly Report • Oct 27, 2023
Quarterly Report
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Christian Berner Tech Trade companies continue to show increased order intake, revenue, and improved results thanks to strong offerings at the heart of society's challenges. EBITA increased in the third quarter by more than 26 percent, compared to the previous year, to SEK 21.9 million, and with SEK 53.8 million for the first nine months, an improvement of more than 53 percent.
• There were no significant events after the end of the reporting period.
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Third quarter was record strong with an EBITA of SEK 22 million. Accumulated so far this year, the result is SEK 54 million, an improvement of 53 percent, compared to last year, and already 33 percent over the full year 2022. We have stabilized earnings with a larger business volume, which is also reflected in more consistent results over the year. Our business is diversified with a good spread across markets and customer groups, and a strong order intake is another sign of strength.
Several of the subsidiaries have delivered impressive results in the quarter. Zander & Ingeström not only delivered very strong results in the quarter but also won several good orders, including the previously announced order for three high-voltage electric boilers to be installed at Helen Ltd Hanasaari, Finland. The electric boilers will increase Hanasaari's carbon-neutral district heat production. More and more people are replacing fossil fuel boilers with high-voltage electric boilers from Zander & Ingeström – that is beneficial for all of us.
Through in-house production, during Q3 Bullerbekämparen delivered most of the large order for noise-reducing customized control rooms it won last year, while at the same time replenishing its order books. A working environment free of noise is a matter of course for a responsible employer, and customers are increasingly asking for Bullerbekämparen's solutions to achieve this. In fact, noise reduction is an important area for several of the Group's companies. During the quarter, the Christian Berner companies in Norway, Sweden and Finland won fine orders for vibration and noise reduction materials for rail traffic. It is satisfying to see how Group companies can contribute to making rail transport even more sustainable by reducing its noise impact its surroundings.
"More and more people are replacing fossil fuel boilers with high-voltage electric boilers from Zander & Ingeström – that is beneficial for all of us."
The excellent business in combination with the dedicated work to increase decentralization and streamline operations continues to bear fruit. The group's EBITA margin increased to 9.8 percent from 8.7 percent in the same period last year and finally above the Group target of at least 9 percent. So far this year, we are now at 7.6 percent compared to 5.9 per-
cent in the same period last year. Sales in the quarter grew by 12 percent and order intake by as much as 33 percent, which means that we will continue to have a strong orderbook in the coming quarters.
We are humbled by the current business climate but, at the same time, we are still experiencing stable demand when viewing the Group as a whole. A large part of our offering addresses societal challenges; such as sustainable energy, clean water, and quiet environments. Thanks to determined efforts, we have an increasingly strong financial situation, which both provides security and makes it easier for us to take advantage of business opportunities that may arise in the future. We continue to strive for a more efficient, entrepreneurial organization that is a good owner for other fine businesses to add to the Group.
President and CEO, Christian Berner Tech Trade AB
Net sales for the third quarter were SEK 223.7 (199.2) million, an increase of SEK 24.5 million, where organic growth totaled SEK 22.6 million. The third quarter showed a high level of customer activity and good delivery levels. In particular, Energy & Environment contributed with several good business transactions of both a recurring and a one-off nature.
| SEK million | |||||
|---|---|---|---|---|---|
| Jul–Sep 2022 |
Currency effect, foreign subsidiar ies |
Acquired growth |
Organic growth |
Total growth |
Jul–Sep 2023 |
| 199.2 | 1.0% | – | 11.3% | 12.3% | 223.7 |
The Group's EBITA for the third quarter was SEK 21.9 (17.3) million, an improvement of SEK 4.6 million. With good business, especially in Energy & Environment, the quarter's increased revenue has generated a high coverage ratio, significantly more than the previous year, and has thus increased the EBITA margin.
Depreciation totaled SEK -8.5 (-7.3) million in the third quarter. Depreciation/amortization primarily consists of depreciation of right-of-use assets. During the quarter, the Group invested in property, plant and equipment in the amount of SEK -0.3 (-0.9) million. Investments in intangible assets totaled SEK -0.1 (-2.6) million.
Consolidated net financial items for the third quarter were SEK -2.9 (-1.7) million. The increase is attributable to higher interest expenses.
EBITA
Consolidated tax expenses for the third quarter were SEK -4.1 (-3.3) million. The effective tax rate for the quarter was 22.4 (21.6) percent.
Net sales for the first six months were SEK 707.9 (594.3) million, an increase of SEK 113.6 million, with organic growth totaling SEK 111.3 million. The Energy & Environment business area grew strongly with deliveries from existing order backlogs together with good development in sales with shorter lead times.
In Technology & Distribution, some of the operations are doing well, while individual segments are encountering a hesitance to buy on the part of customers.
| Jan–Sep 2022 |
Currency effect, foreign subsidiar ies |
Acquired growth |
Organic growth |
Total growth |
Jan–Sep 2023 |
|---|---|---|---|---|---|
| 594.3 | 0.4% | – | 18.7% | 19.1% | 707.9 |
The Group's EBITA for the first nine months grew to SEK 53.8 (35.1) million, an improvement of SEK 18.7 million. Additional costs from the development of organizations, inflationary pressures on the cost side, and increased marketing activities compared to the previous year when Covid dampened activity
has been more than offset by increased earnings from sales growth. This is reflected in the higher EBITA margin. During the first nine months, system decommissioning costs of SEK -2.0 million were charged to earnings.
Depreciation/amortization was SEK -25.3 (-21.9) million in the first nine months. Depreciation/amortization primarily consists of depreciation of right-of-use assets. During the first nine months, the Group invested in property, plant and equipment in the amount of SEK -2.1 (-2.3) million.
Investments in intangible assets totaled SEK -5.1 (-4.7) million. Investments in intangible fixed assets consist of replacement and development of business systems.
Consolidated net financial items for the first nine months totaled SEK -8.6 (-5.6) million. The increase is attributable to higher interest expenses.
Consolidated tax expenses for the first nine months totaled SEK -9.8 (-6.4) million. The effective tax rate for the period was 22.0 percent (22.1).
The Technology & Distribution business area combines distribution activities and own products in water treatment, packaging equipment, vibration damping, technical plastics and process technology. The business area helps customers in industry and the public sector to reduce resource consumption, improve their environmental footprint or streamline their own operations. The business area comprises the four Nordic Christian Berner companies and Empakk AS.
The net sales for the business area for the third quarter were SEK 124.3 (128.4) million, a decrease of SEK -4.1 million. The business area has encountered some hesitance among customers in individual segments, while the main parts of the business area have had a stable development. During the quarter, the companies in the business area won several good orders, including for vibration and noise reduction materials for railway traffic.
| SEK million | Currency | |||||
|---|---|---|---|---|---|---|
| Jul–Sep 2022 |
effect, foreign subsidiar ies |
Acquired growth |
Organic growth |
Total growth |
Jul–Sep 2023 |
|
| 128.4 | 1.5% | – | -4.7% | -3.2% | 124.3 |
The business area's EBITA in the third quarter was SEK 8.5 (10.4) million, a decline of SEK -1.9 million compared to the same period in the previous year. The lower revenue volume contributed to the decline in earnings in the quarter. Costs have been kept at the same level as last year. Inflationary pressures on costs have been managed through active efforts.
The business area's net sales for the first nine months were SEK 400.0 (378.0) million, an increase of SEK 22.0 million. Of this increase, SEK 19.7 million was organic growth. After a strong start to the year, the third quarter saw subdued demand in some segments, which reduced growth compared to the previous year. With the good start to the year, organic growth of 5.2 percent was achieved. Overall, the first nine months show a good level of customer deliveries, with strong development compared to the same period last year.
| SEK million | |||||
|---|---|---|---|---|---|
| Jan–Sep 2022 |
Currency effect, foreign subsidiar ies |
Acquired growth |
Organic growth |
Total growth |
Jan–Sep 2023 |
| 378.0 | 0.6% | – | 5.2% | 5.8% | 400.0 |
EBITA for the business area was SEK 23.1 (23.2) million in the first nine months. The increased deliveries to customers have strengthened earnings, while the mix of deliveries has put some pressure on earnings.
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Change % |
Jan–Sep 2023 |
Jan–Sep 2022 |
Change % |
2022/23 R12 |
Full year 2022 |
Change % |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 124,274 | 128,380 | -3.2 | 400,034 | 378,036 | 5.8 | 549,934 | 527,936 | 4.2 |
| EBITA | 8,484 | 10,417 | -18.6 | 23,108 | 23,151 | -0.2 | 30,529 | 30,571 | -0.1 |
| EBITA margin, % | 6.8 | 8.0 | – | 5.8 | 6.1 | – | 5.5 | 5.7 | – |
The Energy & Environment business area combines large parts of the Group's pump activities and equipment targeting the energy and process industries. The business area increases the sustainability of the energy, process and manufacturing industry through reduced emissions, reduced energy losses and/or improved working environment. Companies in the business area are Zander & Ingeström, Swedenborg and Bullerbekämparen.
The business area's net sales for the third quarter were SEK 99.6 (72.6) million, an increase of SEK 27.0 million, with the full increase constituting organic growth. During the quarter, deliveries and customer assignments followed the positive trend established by the business area over the previous year. Compared to the third quarter of the previous year, sales increased through efficient management of the larger order backlog, a positive mix of product and customer contracts, and the efficient way in which the companies met increased demand for new technical solutions.
| SEK million Jul–Sep |
Currency effect, foreign subsidiar |
Acquired | Organic | Total | Jul–Sep |
|---|---|---|---|---|---|
| 2022 | ies | growth | growth | growth | 2023 |
| 72.6 | – | – | 37.2% | 37.2% | 99.6 |
The business area's EBITA in the third quarter was SEK 17.0 (8.4) million, an increase of SEK 8.7 million compared to the previous year. The increased sales, together with a favorable product mix, have resulted in good margins. There is good development, from the smallest to the largest unit.
The business area's net sales for the first nine months were SEK 308.6 (220.8) million, an increase of SEK 87.8 million, with the total increase constituting organic growth. During the period, deliveries and customer assignments followed the positive trend established by the business area over the previous year. In addition, high order intake indicates continued good development.
| SEK million Jan–Sep 2022 |
Currency effect, foreign subsidiar ies |
Acquired growth |
Organic growth |
Total growth |
Jan–Sep 2023 |
|---|---|---|---|---|---|
| 220.8 | – | – | 39.8% | 39.8% | 308.6 |
The business area's EBITA in the first nine months was SEK 47.7 (18.4) million, an increase of SEK 29.3 million compared to the previous year. Increased sales have resulted in good margins, despite higher cost levels caused by growing organizations and increased marketing activities.
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Change % |
Jan–Sep 2023 |
Jan–Sep 2022 |
Change % |
2022/23 R12 |
Full year 2022 |
Change % |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 99,623 | 72,635 | 37.2 | 308,598 | 220,825 | 39.7 | 408,321 | 320,548 | 27.4 |
| EBITA | 17,033 | 8,365 | 103.6 | 47,748 | 18,406 | 159.4 | 49,252 | 19,911 | 147.4 |
| EBITA margin, % | 17.0 | 11.2 | – | 15.3 | 8.1 | – | – | 6.1 | – |
The Group companies have actively worked to improve the efficiency of working capital and business-related parts during the Group's growth. The results are beginning to show, for example, through increased bank balances.
At September 30, the Group had SEK 78.7 (56.9 at December 31, 2022) millions in cash and cash equivalents. The cash flow from operating activities during the third quarter was SEK 39.1 (19.5) million. In the third quarter, investments of SEK -0.2 (-4.1) million were made, primarily in the development of the new IT environment.
The cash flow from operating activities for the first nine months was SEK 57.1 (3.8) million. Investments of SEK -4.9 million (-7.7) were made during the first nine. months of the year. Dividends of SEK 11.3 (14.1) million were paid during the first nine months.
At the end of the period, there were 217 employees (220 at December 31, 2022), of which 49 (51) were women and 168 (169) were men.
Operations were affected by a wide range of factors, some of which are within the company's control and others outside. Market-related risks include cyclical risks. Financial risks include exchange rate risks and interest rate risks. Christian Berner Tech Trade operates in four different countries, with a large number of customers in different industries and a large number of suppliers, which limits the business and financial risks. The business environment has improved with regard to the previous problems involving component shortages and long delivery times in the supply chain. Such issues cannot be ruled out for future business, but clear improvements have been seen during the first nine months of the year. These risks are carefully monitored, and communication with customers is ongoing to mitigate the effects of these risks and uncertainties. Another uncertainty is, of course, the war in Ukraine and its impact on our operations. The Group has no operations in the countries directly impacted, but is affected by price changes and may also be affected by a general economic downturn.
The Board of Directors and management closely monitor developments and update their assessment of the potential impact of the war on the company's operations based on how the situation develops. Furthermore, cyber security is high on the agenda, and the company is constantly working to improve security against potential intrusions.
Price increases in goods have, to some extent, slowed in recent months. Continued price increases on energy and fuel would entail a short-term risk for the Christian Berner Group, before the new cost levels could be fully priced into business. The Group is working actively on pricing, both when there are cost increases, but also in order to be an attractive supplier when costs are adjusted downwards.
If inflation takes hold and remains high for an extended period of time, it will entail even higher interest expenses for borrowing, which primarily affects the parent company. The liquidity and financing risk thereby increases but is deemed to remain at an acceptable level, taking probable interest rate hikes into account.
For the subsidiaries, the effect of interest rate hikes is limited. On the other hand, continued high inflation may entail a general economic downturn, which may ultimately affect the availability of business for the subsidiaries. However, the assessment is that the areas at which the Group mainly directs its offerings are in need of solutions, deliveries and products independently of economic cycles. Exposure to the residential building sector, which has already been affected by interest rate increases, is limited.
During the first nine months, the Group had the following transactions with affiliated parties. The services were purchased on normal business terms on a commercial basis.
Transactions in the amount of SEK 0.6 (0.4) million regarding leased premises for AB GF Swedenborg took place between Christian Berner Tech Trade AB's subsidiary AB GF Swedenborg AB and PSW Fastighets AB, which is owned by a board member of AB GF Swedenborg.
The Group has sold goods to RB Glas och Plast AB, which is owned by a board member of Christian Berner Tech Trade AB. The value of the transaction is SEK 0.4 (0.6) million.
Since September 1, 2022, the Group has sublet a small part of the office in Stockholm to Gårdaverken AB. The Group also leases art, located in a subsidiary's office, from Gårdaverken AB for a small amount.
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The main functions of the parent company Christian Berner Tech Trade AB (CBTT) are to work with business development, acquisitions, financing, governance, analysis and communication. At the end of September, there were two employees (two at December 31, 2022).
The parent company's net sales, which consists of intra-Group invoicing of services, totaled SEK 3.3 (2.1) million in the third quarter. During the third quarter, operating expenses totaled SEK -6.6 (-4.9) million, which was related to personnel expenses and current external costs. EBIT for the third quarter totaled SEK -3.3 (-2.8) million, financial items totaled -2.4 (-1.4) million, and profit/loss and comprehensive income for the period was SEK -4.5 (-3.4) million.
For the first nine months of the year, the parent company's sales totaled SEK 8.9 million (5.7), and operating expenses totaled SEK -19.7 (-15.6) million. EBIT thus totaled SEK -10.8 (-9.9) million. Financial items totaled SEK -7.3 million (-4.4), and profit/loss and comprehensive income for the period totaled SEK -14.4 (-11.5) million.
The parent company has pledged shares in subsidiaries as collateral. Pledged shares total SEK 143.5 (143.5) million in the parent company. For the Group, pledged assets total SEK 203.3 million (203.5 million at December 31, 2022).
In April 2022, the Annual General Meeting decided to issue a maximum of 400,000 warrants, to staff in senior positions within the group, over 2022/2025. The warrants have been offered against market remuneration according to Black & Scholes. Subscription for the shares may take place during the period 09/01/2025–09/30/2025. The program currently does not give rise to any dilution effect. The number of outstanding warrants as of September 30, 2023 was 310,000 and 90,000 in own custody.
In April 2023, the Annual General Meeting authorized the Board to decide on a new issue of a maximum of 1,875,400 shares, corresponding to a dilution of 10 percent, with or without preferential rights for the company's shareholders. Furthermore, the Board of Directors was authorized, during the period until the next annual general meeting, to decide on the repurchase
and transfer of own shares for a maximum of 10 percent of all outstanding shares.
At the annual general meeting on April 27, 2023, CBTT decided to distribute 60 öre per share, pursuant to the Board's proposal. The dividend was paid in two installments, with the first payment made on 05/05/2023 and the second payment made on 09/08/2023. The dividend amounts to a total of SEK 11.3 million and corresponds to 46.2 percent of profit after tax. The policy of distributing 30–50 percent of profit after tax over the long term remains unchanged.
The ten largest shareholders at the September 30 are shown in the table below. As of the end of September 2023, the company had 2,807 shareholders, and the closing price of the share on that date was SEK 27.80.
The number of outstanding shares at the end of the period amounted to 18,759,398 divided into 1,250,000 A shares and 17,509,398 B shares. A shares have a voting value of 10 per share, while B shares have a value of 1 per share. The share is listed on Nasdaq Stockholm's main list SmallCap with the ticker "CBTT".
| Name | Number of shares |
Percent age of capital, % |
Percent age of votes, % |
|---|---|---|---|
| Gårdaverken | 4,462,383 | 23.8 | 52.4 |
| Cervantes Capital | 2,108,149 | 11.2 | 7.0 |
| Concejo AB | 1,932,323 | 10.3 | 6.4 |
| Isolde Stensdotter Berner | 1,630,572 | 8.7 | 5.4 |
| Lannebo Fonder | 970,558 | 5.2 | 3.2 |
| Ksenia Berner | 796,920 | 4.2 | 2.7 |
| Unionen | 745,000 | 4.0 | 2.5 |
| Avanza Pension | 484,756 | 2.6 | 1.6 |
| Nordnet Pensionsförsäkringar | 471,570 | 2.5 | 1.6 |
| Mikael Gunnarsson | 358,000 | 1.9 | 1.2 |
| Others | 4,799,167 | 25.6 | 16.0 |
| Total | 18,759,398 | 100.0 | 100.0 |
| 3 months | 9 months | Fiscal year | |||
|---|---|---|---|---|---|
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full-year 2022 |
| Sales | |||||
| Net sales | 223,690 | 199,214 | 707,901 | 594,270 | 842,000 |
| Other sales | 1,385 | 371 | 3,865 | 1,885 | 2,766 |
| Total sales | 225,075 | 199,585 | 711,766 | 596,155 | 844,766 |
| Goods for resale | -134,903 | -123,550 | -426,738 | -359,007 | -518,655 |
| Other external costs | -17,950 | -15,566 | -60,209 | -50,407 | -73,853 |
| Personnel costs | -42,460 | -36,080 | -145,095 | -129,944 | -182,548 |
| Depreciation of property, plant and equipment and amortization of intangible assets1) |
-8,492 | -7,270 | -25,323 | -21,853 | -29,268 |
| Other operating expenses | 232 | -27 | -1,515 | -560 | -872 |
| Total operating expenses | -203,573 | -182,494 | -658,880 | -561,771 | -805,196 |
| EBIT | 21,502 | 17,091 | 52,886 | 34,384 | 39,570 |
| Financial income | 188 | 26 | 445 | 69 | 246 |
| Financial expenses | -3,174 | -1,756 | -9,047 | -5,638 | -8,024 |
| Net financial items | -2,896 | -1,731 | -8,602 | -5,569 | -7,778 |
| Profit/loss before tax | 18,516 | 15,360 | 44,284 | 28,815 | 31,792 |
| Income tax | -4,140 | -3,320 | -9,757 | -6,370 | -7,449 |
| Profit/loss for the period | 14,376 | 12,040 | 34,527 | 22,445 | 24,343 |
| Other comprehensive income | |||||
| Items that may later be transferred to profit and loss for the period |
|||||
| Translation differences for the year on translation of foreign subsidiaries |
84 | 1,205 | -1,310 | 2,349 | 3,385 |
| Other comprehensive income for the year | 84 | 1,205 | -1,310 | 2,349 | 3,385 |
| Total comprehensive income for the year | 14,460 | 13,245 | 33,217 | 24,794 | 27,728 |
| Earnings per share Earnings per share before and after dilution (SEK) |
0.77 | 0.64 | 1.84 | 1,20 | 1.30 |
1) The item depreciation/amortization consists of the following subitems:
| 3 months 9 months |
Fiscal year | ||||
|---|---|---|---|---|---|
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full year 2022 |
| Depreciation of property, plant and equipment | -1,260 | -1,170 | -4,322 | -3,461 | -4,687 |
| Amortization of intangible assets | -446 | -238 | -912 | -699 | -938 |
| Depreciation of right-of-use assets | -6,786 | -5,862 | -20,089 | -17,693 | -23,643 |
| Total depreciation/amortization | -8,492 | -7,270 | -25,323 | -21,853 | -29,268 |
| SEK thousand | 09/30/2023 | 09/30/2022 | 12/31/2022 | |
|---|---|---|---|---|
| ASSETS | ||||
| Fixed assets | ||||
| Intangible assets | ||||
| Goodwill | 197,406 | 198,019 | 198,417 | |
| Distribution rights | 935 | 1,300 | 1,211 | |
| Trademark | 32,497 | 32,497 | 32,497 | |
| Internally developed software | 765 | 1,311 | 1,169 | |
| Intangible assets in progress | – | 4,417 | 8,059 | |
| Other intangible assets | 12,913 | – | – | |
| Total intangible assets | 244,516 | 237,545 | 241,353 | |
| Machinery and equipment | 16,868 | 19,225 | 20,889 | |
| Right-of-use assets | 95,206 | 73,554 | 71,920 | |
| Financial assets | ||||
| Other noncurrent receivables | 982 | 936 | 941 | |
| Deferred tax assets | 550 | 523 | 372 | |
| Total financial assets | 1,532 | 1,459 | 1,313 | |
| Total noncurrent assets | 358,122 | 331,783 | 335,475 | |
| Current assets | ||||
| Inventories | 83,614 | 88,424 | 77,658 | |
| Advance payments to suppliers | 3,838 | 8,704 | 3,267 | |
| Contract assets | 8,623 | – | 10,269 | |
| Current tax assets | – | 3,301 | 138 | |
| Trade receivables | 131,901 | 126,417 | 145,474 | |
| Prepaid expenses and accrued income | 3,415 | 4,455 | 5,525 | |
| Other receivables | 1,669 | 3,506 | 3,029 | |
| Cash and cash equivalents | 78,690 | 45,645 | 56,866 | |
| Total current assets | 311,750 | 280,452 | 302,226 | |
| TOTAL ASSETS | 669,872 | 612,234 | 637,701 |
| SEK thousand | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| - attributable to the parent company's shareholders | 223,093 | 198,134 | 201,068 |
| - attributable to noncontrolling interests | – | – | – |
| Total equity | 223,093 | 198,134 | 201,068 |
| LIABILITIES | |||
| Noncurrent liabilities | |||
| Lease liability | 71,828 | 51,417 | 49,006 |
| Other noncurrent liabilities | – | 93 | 95 |
| Other provisions | 2,316 | 1,203 | 1,216 |
| Deferred tax liabilities | 7,967 | 8,465 | 8,089 |
| Total noncurrent liabilities | 82,111 | 61,178 | 58,406 |
| Current liabilities | |||
| Borrowings from credit institutions | 175,000 | 175,000 | 175,000 |
| Lease liability | 22,922 | 20,348 | 21,065 |
| Advance payments from customers | 11,810 | 27,427 | 15,737 |
| Trade payables | 60,159 | 59,902 | 77,351 |
| Contract liabilities | 12,318 | – | 5,138 |
| Current tax liabilities | 7,655 | – | 3,618 |
| Other liabilities | 28,334 | 27,405 | 30,882 |
| Accrued expenses and prepaid income | 46,470 | 42,840 | 49,436 |
| Total current liabilities | 364,668 | 352,922 | 378,227 |
| TOTAL EQUITY AND LIABILITIES | 669,872 | 612,234 | 637,701 |
| SEK thousand | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Beginning of period | 201,068 | 186,827 | 186,827 |
| Comprehensive income for the period | 33,217 | 24,794 | 27,728 |
| Transactions with shareholders | |||
| Dividend | -11,256 | -14,070 | -14,070 |
| Option premiums received | 64 | 583 | 583 |
| End of period | 223,093 | 198,134 | 201,068 |
| 3 months | 9 months | Fiscal year | |||
|---|---|---|---|---|---|
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full year 2022 |
| Profit/loss before tax | 18,516 | 15,360 | 44,284 | 28,815 | 31,792 |
| Adjustment for noncash items | 8,470 | 7,243 | 25,902 | 23,280 | 28,857 |
| Income tax paid | 119 | 2,859 | -5,785 | -9,952 | -4,263 |
| Cash flow from operating activities before changes in working capital |
27,105 | 25,462 | 64,401 | 42,143 | 56,386 |
| Changes to: | |||||
| Inventories | 1,362 | 21,337 | -6,419 | -10,453 | 6,428 |
| Operating receivables | 23,645 | -7,693 | 18,503 | -26,867 | -55,956 |
| Operating liabilities | -13,010 | -19,650 | -19,393 | -986 | 18,198 |
| Total change in working capital | 11,997 | -6,006 | -7,309 | -38,306 | -31,330 |
| Cash flow from operating activities | 39,102 | 19,456 | 57,092 | 3,837 | 25,056 |
| Investments in property, plant and equipment | -336 | -857 | -2,106 | -2,310 | -5,124 |
| Sales of property, plant and equipment | 184 | – | 2,285 | – | 2,053 |
| Investments in intangible assets | -92 | -2,649 | -5,072 | -4,727 | -8,369 |
| Investments in financial fixed assets | – | -630 | -36 | -630 | -630 |
| Cash flow from investing activities | -244 | -4,136 | -4,929 | -7,667 | -12,070 |
| Option premiums | 64 | 583 | 64 | 583 | 583 |
| Amortization of lease liabilities | -6,058 | -5,872 | -18,708 | -17,708 | -23,568 |
| Dividend paid | -5,628 | – | -11,256 | -14,070 | -14,070 |
| Cash flow from financing activities | -11,622 | -5,289 | -29,900 | -31,195 | -37,055 |
| Cash flow for the period | 27,236 | 10,031 | 22,263 | -35,025 | -24,069 |
| Cash and cash equivalents, beginning of period | 51,507 | 35,205 | 56,866 | 79,821 | 79,821 |
| Effect of exchange rate changes on cash | -53 | 409 | -439 | 849 | 1,114 |
| Cash and cash equivalents, end of period | 78,690 | 45,645 | 78,690 | 45,645 | 56,866 |
| 3 months | 9 months | Fiscal year | |||
|---|---|---|---|---|---|
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full year 2022 |
| Sales | |||||
| Net sales | 3,109 | 2,096 | 8,478 | 5,727 | 8,935 |
| Other sales | 202 | – | 431 | – | 267 |
| Total sales | 3,311 | 2,096 | 8,909 | 5,727 | 9,202 |
| Operating expenses | |||||
| Other external costs | -3,201 | -2,588 | -9,551 | -8,437 | -11,805 |
| Personnel costs | -3,387 | -2,316 | -10,058 | -7,196 | -11,378 |
| Depreciation of property, plant and equipment | -18 | – | -52 | – | -6 |
| Other operating expenses | – | – | -23 | – | -2 |
| Total operating expenses | -6,606 | -4,904 | -19,684 | -15,633 | -23,191 |
| EBIT | -3,295 | -2,808 | -10,775 | -9,906 | -13,989 |
| Profit from participations in Group companies | – | – | – | – | 10,065 |
| Interest and similar income | 1 | – | 1 | – | 9 |
| Interest and similar expenses | -2,386 | -1,380 | -7,332 | -4,443 | -6,541 |
| Total profit/loss from financial items | -2,385 | -1,380 | -7,331 | -4,443 | 3,533 |
| Appropriations | – | – | – | – | 32,905 |
| Profit/loss before tax | -5,680 | -4,188 | -18,106 | -14,349 | 22,449 |
| Income tax | 1,161 | 829 | 3,710 | 2,876 | -2,605 |
| Profit/loss for the period | -4,519 | -3,359 | -14,396 | -11,473 | 19,844 |
| SEK thousand | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Property, plant and equipment | |||
| Machinery and equipment | 306 | – | 193 |
| Total property, plant and equipment | 306 | – | 193 |
| Financial assets | |||
| Shares in Group companies | 315,484 | 318,583 | 318,583 |
| Other noncurrent receivables | 630 | 630 | 630 |
| Total financial assets | 316,114 | 319,213 | 319,213 |
| Total noncurrent assets | 316,420 | 319,213 | 319,406 |
| Current assets | |||
| Trade receivables | – | – | 143 |
| Receivables from Group companies | 13,965 | 10,541 | 28,901 |
| Current tax assets | 1,671 | 6,205 | – |
| Other current receivables | 109 | 357 | 105 |
| Prepaid expenses and accrued income | 799 | 588 | 1,004 |
| Cash and cash equivalents | 42,489 | 7,715 | 10,459 |
| Total current assets | 59,033 | 25,406 | 40,612 |
| TOTAL ASSETS | 375,453 | 344,619 | 360,018 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Total restricted equity | 37,689 | 37,625 | 37,625 |
| Total nonrestricted equity | 96,961 | 91,295 | 122,613 |
| Total equity | 134,650 | 128,920 | 160,238 |
| LIABILITIES | |||
| Noncurrent liabilities | |||
| Liabilities to Group companies | – | 120 | 120 |
| Total noncurrent liabilities | – | 120 | 120 |
| Current liabilities | |||
| Borrowings from credit institutions | 175,000 | 175,000 | 175,000 |
| Trade payables | 900 | 704 | 1,175 |
| Liabilities to Group companies | 59,061 | 30,052 | 12,203 |
| Current tax liabilities | – | – | 2,289 |
| Other liabilities | 730 | 726 | 557 |
| Accrued expenses and prepaid income | 5,112 | 9,097 | 8,436 |
| Total current liabilities | 240,803 | 215,579 | 199,660 |
| Total liabilities | 240,803 | 215,699 | 199,780 |
| TOTAL EQUITY AND LIABILITIES | 375,453 | 344,619 | 360,018 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplemental Accounting Rules for Corporate Groups. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A are presented, in addition to the financial statements and its associated notes, in the other parts of the interim report as well.
There are no new accounting standards entering into effect in 2023 that impact the Group.
For further information regarding Christian Berner Tech Trade's accounting principles, refer to the company's annual report for 2022, Note 2 Accounting principles and Note 1 in this report.
| Assets | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Right-of-use assets | 95,206 | 73,554 | 71,920 |
| Total | 95,206 | 73,554 | 71,920 |
| Lease liabilities | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Current | 22,922 | 20,348 | 21,065 |
| Noncurrent | 71,828 | 51,417 | 49,006 |
| Total | 94,750 | 71,765 | 70,071 |
| 3 months | 9 months | Fiscal year | |||
|---|---|---|---|---|---|
| Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full year 2022 |
|
| Depreciation of right-of-use assets | -6,786 | -5,882 | -20,089 | -17,693 | -23,643 |
| Interest expenses | -778 | -371 | -1,694 | -1,175 | -1,535 |
| Total | -7,564 | -6,253 | -21,783 | -18,868 | -25,178 |
Christian Berner Tech Trade's revenue streams are presented by business area, where the business area corresponds to the market for the revenue.
Both the Technology & Distribution and Energy & Environment business areas have revenues from all three categories below.
Commission sales, where Christian Berner Tech Trade subsidiaries acts as a sales channel for suppliers through contact with the end customer. The revenue is an agreed commission that our subsidiaries receive from the suppliers and is usually received from suppliers in connection with or after the product is delivered to the end customer. The respective subsidiary does not check the sales flow and is normally dependent on suppliers and customers agreeing and closing the deal in order for us to be able to receive final payment from the supplier.
Project sales refer to the revenue streams where Christian Berner Tech Trade subsidiaries have several performance commitments, i.e., it is not only comprised of one service or product, but the agreement comprises several different parts.
The revenue is mainly comprised of remuneration agreed in advance for the projects and usually paid through advance invoicing and invoicing at various milestones in the projects, depending on the size of the projects. These projects can run for a long time, and depending on their nature, the income and expenses are also recognized gradually as the degree of completion advances. The earnings outcome for larger projects depends on the estimate holding and the project being successful. Accordingly, there is always an uncertainty regarding the profitability of the project before it is completed.
| 3 months | 9 months | Fiscal year | |||
|---|---|---|---|---|---|
| Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
Full year 2022 |
|
| Goods recorded at a given time | 204,532 | 192,884 | 649,755 | 564,479 | 800,048 |
| Goods and services recognized over time | 19,158 | 6,330 | 58,146 | 29,791 | 41,952 |
| Total | 223,690 | 199,214 | 707,901 | 594,270 | 842,000 |
Financial assets measured at cost
| Assets on the Balance Sheet | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Trade receivables | 131,901 | 126,417 | 145,474 |
| Cash and cash equivalents | 78,690 | 45,645 | 56,866 |
| Other noncurrent receivables | 982 | 936 | 941 |
| Total | 211,573 | 172,998 | 203,281 |
| Financial liabilities measured at amortized cost | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Borrowings from credit institutions | 175,000 | 175,000 | 175,000 |
| Lease liabilities | 94,750 | 71,765 | 70,071 |
| Trade payables | 60,159 | 59,902 | 77,351 |
| Accrued expenses and prepaid income | 46,470 | 42,840 | 49,436 |
| Total | 376,379 | 349,507 | 371,858 |
| Additional purchase consideration measured at fair value | 09/30/2023 | 09/30/2022 | 12/31/2022 |
|---|---|---|---|
| Opening balance | – | 14,361 | 14,361 |
| Utilization | – | -15,422 | -15,422 |
| Purchase | – | – | – |
| Exchange rate differences | – | 1,061 | 1,061 |
| Closing balance | – | – | – |
CBTT holds various financial instruments and all of them are measured at their amortized cost, with the exception of liabilities for additional purchase considerations, which instead are measured at their fair value through profit or loss. A liability to pay an additional purchase consideration is a financial instrument the value of which is dependent on assumptions and assessments made by the company (level 3 instruments). In the current case, the value of the liability depends on the acquired company's performance in 2021. Where financial instruments are recognized at their amortized cost, these values correspond in all cases to the fair values of the items. During the first quarter of 2022, a debt obligation of SEK 3.6 million was adjusted regarding Empakk's acquisition calculation, which was subsequently paid out in April 2022.
| AMOUNT IN SEK THOUSANDS | Jul–Sep 2023 |
Jul–Sep 2022 |
Change % | Jan–Sep 2023 |
Jan–Sep 2022 |
Change % | 2022/23 R12 |
Full year 2022 |
Change % |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 225,075 | 199,585 | 12.9 | 711,766 | 596,155 | 19.4 | 960,377 | 844,766 | 13.7 |
| Net sales | 223,690 | 199,214 | 12.3 | 707,901 | 594,270 | 19.1 | 955,631 | 842,000 | 13.5 |
| EBITA | 21,948 | 17,329 | 26.7 | 53,798 | 35,083 | 53.3 | 59,223 | 40,508 | 46.2 |
| EBITA margin, % | 9.8 | 8.7 | – | 7.6 | 5.9 | – | 6.2 | 4.8 | – |
| Balance sheet total | 669,872 | 612,234 | 9.4 | 669,872 | 612,234 | 9.4 | 669 872 | 637,701 | – |
| Equity | 223,093 | 198,134 | 12.6 | 223,093 | 198,134 | 12.6 | 223 093 | 201,068 | – |
| Total sales growth, % | 12.9 | -2.7 | – | 19.4 | 7.9 | – | 13.7 | 13.0 | – |
| Gross margin, % | 39.7 | 38.1 | – | 39.7 | 39.8 | – | 38.6 | 38.4 | – |
| Equity ratio, % | 33.3 | 32.4 | – | 33.3 | 32.4 | – | 33,3 | 31.5 | – |
| Return on equity (R12), % | 35,2 | 33,2 | – | 28,0 | 20,7 | – | 22,4 | 16.4 | – |
| Net interest-bearing debt, excluding IFRS 16 |
96,310 | 129,355 | -25.5 | 96,310 | 129,355 | -25.5 | – | 118,134 | – |
| Net interest-bearing debt, including IFRS 16 |
191,060 | 201,120 | -5.0 | 191,060 | 201,120 | -5.0 | – | 188,205 | – |
| Average number of employees, FTE (count) |
218 | 218 | 0.0 | 218 | 214 | – | – | 215 | – |
| Number of shares, end of period | 18,759,398 18,759,398 | – 18,759,398 18,759,398 | – 18,759,398 18,759,398 | – | |||||
| Earnings per share (SEK) | 0.77 | 0.64 | 19.4 | 1.84 | 1.20 | 53.8 | 1.94 | 1.30 | 49.6 |
| Non-IFRS performance indicators | Description | Objective |
|---|---|---|
| Sales | Net sales and other sales. | Total sales is a combination of how the company's vari ous business areas and markets perform. |
| Total sales growth | Increase in total sales as a percentage of the revenue of the previous year. |
Indicator of the company's growth relative to the previ ous period, which illustrates the company's direction and enables the underlying driving forces to be tracked. |
| EBITA | Earnings before impairment of goodwill and impairment and amortization of other intangible assets that arose in connection with business combinations and equiva lent transactions (Earnings Before Interest, Tax and Amortization). |
As a manufacturing company, EBITA is an important indicator of the company's profitability before interest, taxes and impairments. |
| EBITA margin | EBITA as a percentage of sales. | The EBITA margin illustrates the company's profit gen eration before interest, taxes and amortization, relative to sales. A performance indicator that is appropriate for companies such as Christian Berner Tech Trade. |
| EBIT | EBIT before financial items and taxes. | EBIT gives an overall picture of the company's profit generation in its operating activities. |
| Earnings margin | EBIT before financial items and taxes, as a percentage of sales. |
The earnings margin is a traditional comparison indica tor that illustrates the company's profit generation rela tive to sales. |
| Net financial items | The difference between financial income and financial expenses. |
Net financial items shows the difference between financial income and financial expenses. |
| Profit/loss for the period | Profit after tax. | Profit/loss for the period: This indicator is relevant because it is the profit for the period that the Board of Directors decides to distribute to shareholders or rein vest in the company. |
| Balance sheet total | The company's total assets. | Total assets indicates the company's total assets that are at the disposal of the company in order to generate returns for shareholders. |
| Equity ratio | Equity as a percentage of total assets. | A traditional indicator showing financial risk expressed as the proportion of adjusted equity that is financed by the shareholders. |
| Return on equity | Profit/loss after financial items as a percentage of average equity. |
Shows the return on the shareholders' invested capital from the perspective of the shareholders. |
| Cash flow for the period | Total of the cash flow from operating activities, cash flow from investing activities and cash flow from financ ing activities. |
The cash flow for the period is an indicator of how much cash and cash equivalents the company generates or loses in each period. |
| Number of shares, end of period | The number of outstanding shares at the end of the reporting period. |
The number of shares in the company is important, as it forms the basis of the calculation of earnings per share. |
| Average equity | The average of the total of opening equity for the period added to closing equity for the period. |
Average equity is a more conventional comparison indi cator and is used as a component in a number of other key performance indicators. |
| Net interest-bearing debt, excluding IFRS 16 |
Interest-bearing liabilities, excluding lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period. |
This indicator should be seen as a complement to Net interest-bearing debt, including IFRS 16, as lease liabil ities in certain contexts and by certain stakeholders can be seen as a special type of debt. |
| Net interest-bearing debt, including IFRS 16 |
Interest-bearing liabilities, including lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period. |
Net debt/net cash and cash equivalents is a key perfor mance indicator that shows the company's total debt/ equity ratio. |
| Gross margin | Net sales less goods for resale through net sales. | Gross margin provides a picture of the contribution margin generated by operating activities. |
| Average number of employees | The number of employees in the company translated into full-time positions, i.e., the number of full-time employees who did work during the period. |
This key performance indicator can be analyzed in rela tion to total revenue to assess the company's efficiency based on the number of employees. |
| Earnings per share (SEK) | Profit for the period attributable to the parent company's shareholders divided by the average number of shares. |
Earnings per share (SEK), the measure is relevant because it shows how much of the profit for the period is allocated to each share. |
| 3 months 9 months |
Fiscal year | |||||
|---|---|---|---|---|---|---|
| SEK thousand | Jul–Sep 2023 |
Jul–Sep 2022 |
Jan–Sep 2023 |
Jan–Sep 2022 |
2022/2023 roll 12 months |
Full year 2022 |
| Business area | ||||||
| Technology & Distribution | 124,274 | 128,380 | 400,034 | 378,036 | 549,934 | 527,936 |
| Energy & Environment | 99,623 | 72,635 | 308,598 | 220,825 | 408,321 | 320,548 |
| Other + intra-Group | -207 | -1,801 | -731 | -4,591 | -2,624 | -6,484 |
| Total net sales | 223,690 | 199,214 | 707,901 | 594,270 | 955,631 | 842,000 |
| EBITA | ||||||
| EBIT | 21,502 | 17,091 | 52,886 | 34,384 | 58,072 | 39,570 |
| Amortization of intangible assets | 446 | 238 | 912 | 699 | -1,151 | 938 |
| EBITA | 21,948 | 17,329 | 53,798 | 35,083 | 59,223 | 40,508 |
| EBITA margin, % | ||||||
| Total revenue | 225,075 | 199,585 | 711,766 | 596,155 | 960,377 | 844,766 |
| EBITA | 21,948 | 17,329 | 53,798 | 35,083 | 59,223 | 40,508 |
| EBITA margin, % | 9.8 | 8.7 | 7.6 | 5.9 | 6.2 | 4.8 |
| Gross margin, % | ||||||
| Net sales | 223,690 | 199,214 | 707,901 | 594,270 | 955,631 | 842,000 |
| Goods for resale | -134,903 | -123,550 | -426,738 | -359,007 | -586,386 | -518,655 |
| Gross margin, % | 39.7 | 38.0 | 39.7 | 39.6 | 38.6 | 38.4 |
| Equity ratio | ||||||
| Balance sheet total | 669,872 | 612,234 | 669,872 | 612,234 | 695,339 | 637,701 |
| Closing balance of equity | 223,093 | 198,134 | 223,093 | 198,134 | 226,027 | 201,068 |
| Equity ratio, % | 33.3 | 32.4 | 33.3 | 32.4 | 32.5 | 31.5 |
| Net interest-bearing debt, excluding IFRS 16 | ||||||
| Total interest-bearing liabilities | 269,750 | 246,765 | 269,750 | 246,765 | 268,056 | 245,071 |
| Less lease liabilities | -94,750 | -71,765 | -94,750 | -71,765 | -93,056 | -70,071 |
| Less cash and cash equivalents | -78,690 | -45,645 | -78,690 | -45,645 | -89,911 | -56,866 |
| Net interest-bearing debt, excluding IFRS 16 | 96,310 | 129,355 | 96,310 | 129,355 | 85,089 | 118,134 |
| Net interest-bearing debt, including IFRS 16 | ||||||
| Total interest-bearing liabilities | 269,750 | 246,765 | 269,750 | 246,765 | 268,056 | 245,071 |
| Less cash and cash equivalents | -78,690 | -45,645 | -78,690 | -45,645 | -89,911 | -56,866 |
| Net interest-bearing debt, including IFRS 16 | 191,060 | 201,120 | 191,060 | 201,120 | 178,145 | 188,205 |
| Earnings per share, SEK | ||||||
| Profit/loss for the period | 14,376 | 12,040 | 34,527 | 22,445 | 36,425 | 24,343 |
| Number of shares, end of period | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 | 18,759,398 |
| Earnings per share, SEK | 0.77 | 0.64 | 1.84 | 1.20 | 1.94 | 1.30 |
The Board of Directors and CEO certify that the interim report for Christian Berner Tech Trade AB (publ), 556026-3666, gives a true and fair view of the parent company's and the Group's operations, position and results and describes the significant risks and uncertainties facing the parent company and the Group companies.
Joachim Berner Chairman of the Board
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Caroline Reuterskiöld Chief Executive Officer
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Bertil Persson Board Member Carl Adam Rosenblad Board Member
Stina Wollenius Board Member
Lars Gatenbeck Board Member
Kerstin Gillsbro Board Member
Sara Mattsson Board Member
Sandra Fundin Employee Representative Robert Sätterberg Employee Representative
We have reviewed the condensed interim financial information (interim report) of Christian Berner Tech Trade AB as of September 30, 2023, and the nine-month period ending on that date. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and performing analytical and other review procedures. A review has a different focus and is substantially smaller in scope than an audit conducted in accordance with ISA and other generally
accepted auditing standards. The procedures performed in a review do not enable us to obtain assurance that we are aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not have the same level of assurance as an expressed conclusion based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for the Group and in accordance with the Swedish Annual Accounts Act for the parent company.
Gothenburg, October 27, 2023 KPMG AB
Mathias Arvidsson Authorized Public Accountant The information in this report is published under the EU Market Abuse Regulation 596/2014. The information was submitted by the below-mentioned contact persons for publication on October 27, 2023, at 2:00 p.m.
February 9, 2024 Year-end report 2023
April 25, 2024 Interim report, Q1 2024
July 19, 2024 Interim report for Q2 2024
November 5, 2024 Interim report for Q3 2024
Caroline Reuterskiöld, CEO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: [email protected]
Henrik Nordin, CFO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: [email protected]
English convenience translation from Swedish original. In case of discrepancies between the Swedish original and the English translation, the Swedish original shall prevail.
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