Organic growth despite economic slowdown in Europe
- Net revenue totaled MSEK 1,683 (1,676)
- Adjusted operating profit (EBIT) amounted to MSEK 212 (225), corresponding to an operating margin of 12.6 percent (13.4)
- Items affecting comparability amounted to MSEK 187 and pertained to reversed additional purchase considerations
- Profit after net financial items totaled MSEK 341 (180)
- Earnings per share amounted to SEK 5.02 (2.22)
- Order bookings totaled MSEK 1,650 (1,666)
- Cash flow from operating activities amounted to MSEK 212 (343)
Group
The decline of the industrial economy continued to accelerate after the summer. Nevertheless, the Group grew organically in the quarter. Demand was stable overall, but varied across the Group's diversified customer base. The Nordics stood out as the strongest region, followed by the UK, Asia and the US, while Central Europe was weaker, particularly Germany.
Subsidiaries
Lesjöfors noted mixed demand across different geographic regions and order bookings were unchanged organically. The Chassis Springs business area faced strong comparative figures and declined during the quarter, impacted by customer inventory adjustments, mainly in Germany and the UK. In Industry, the Nordic region and Asia contributed profitable growth. In the US, demand in the industrial segment was also favorable, while volumes were more volatile and overall lower in the medical technology segment. In Germany, demand from Lesjöfors's customers was weak, which also impacted nearby markets throughout Central Europe. Savings are being implemented in the affected units.
For Beijer Tech, demand was stable on the whole, with moderate organic growth. The Fluid Technology business area grew both organically and through acquisitions, and AVS, which was acquired in March, has had a good start in the Group. In Industrial Products, demand was generally weaker in Finland, Sweden and Denmark. The Norwegian market continued to report strong demand in several key customer segments, such as energy and infrastructure. In Niche Technologies, order bookings increased.
Acquisitions
On July 1, Lesjöfors acquired the small UK spring manufacturer Clifford Springs, which got off to a strong start in the Group. The company has a strong offering in energizer springs to the seal and valve industry in the UK, Europe and the US, which strengthens our focus on this attractive product area.
Later in July, Lesjöfors also signed an agreement to acquire Lacroix, a French industrial spring manufacturer with high technology specialization. The company focuses primarily on small to medium-sized batches for a broad customer base, including customers in hydraulics and general industry. For Lesjöfors, the acquisition provides a platform in a key European market with potential for sales of the Group's broad product portfolio. The acquisition was completed after the end of the quarter on October 1.
The weak economic climate has also created increased uncertainty in the M&A market. Beijer Alma is continuing to look for attractive companies for long-term growth, but with a healthy balance with organic growth initiatives and savings.
If you have any questions, please contact:
Henrik Perbeck, President and CEO, Telephone +46 18 15 71 60, henrik.perbeck@beijeralma.se
Johan Dufvenmark, CFO, Telephone +46 18 15 71 60, johan.dufvenmark@beijeralma.se
About Beijer Alma AB
Beijer Alma AB is an international industrial group focused on component production and industrial trading. The Group includes; Lesjöfors, one of Europe's largest spring manufactures and Beijer Tech, which holds strong positions in Nordic industrial trading and manufacturing in niche markets.
Beijer Alma is listed on the Nasdaq Stockholm Mid Cap list.
This information is information that Beijer Alma is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-10-25 07:30 CEST.
