Healthy growth and strong increase in profit. Strong cash flow.
Third quarter of 2020
- Net sales rose by 13 percent to
SEK 1,181 million (1,044). Organic growth
was +1 percent and order intake was higher than net sales - Operating profit (EBITA) increased by 61 percent to
SEK 142 million (89) and the operating margin to 12.1 percent (8.5) - Operating cash flow increased to
SEK 190 million (122) - Earnings per share rose to
SEK 2.46 (1.57) - The cost savings programme of
SEK 100 million delivered according to plan
January-
- Net sales rose by 9 percent to
SEK 3,518 million (3,223). Organic growth
was -10 percent and order intake was in line with net sales - Operating profit (EBITA) increased by 16 percent to
SEK 361 million (311) and the operating margin to 10.2 percent (9.6) - Operating cash flow increased to
SEK 391 million (255) - Earnings per share rose to
SEK 6.01 (5.72)
The Group in brief (for definitions, see page 20)
Quarter 3 | D | Jan-Sep | D | 12-months rolling | Full year | ||||
SEK million | 2020 | 2019 | % | 2020 | 2019 | % | 2019/20 | 2019 | |
Order intake | 1,219 | 1,042 | 17 | 3,528 | 3,206 | 10 | 4,676 | 4,354 | |
Net sales | 1,181 | 1,044 | 13 | 3,518 | 3,223 | 9 | 4,643 | 4,348 | |
Gross profit | 320 | 279 | 15 | 929 | 886 | 5 | 1,226 | 1,183 | |
% | 27.1 | 26.7 | 26.4 | 27.5 | 26.4 | 27.2 | |||
Operating expenses | -178 | -191 | -7 | -568 | -575 | -1 | -792 | -799 | |
% | -15.0 | -18.3 | -16.2 | -17.8 | -17.1 | -18.4 | |||
Operating profit (EBITA) | 142 | 89 | 61 | 361 | 311 | 16 | 433 | 384 | |
% | 12.1 | 8.5 | 10.2 | 9.6 | 9.3 | 8.8 | |||
Profit after tax | 91 | 59 | 55 | 223 | 214 | 5 | 262 | 253 | |
Earnings per share, SEK | 2.46 | 1.57 | 57 | 6.01 | 5.72 | 5 | 7.04 | 6.75 |
CEO´s overview
During the third quarter of 2020,
Results were also the best ever for the first nine months of the year. This is a sign of strength, given the coronavirus pandemic, which continues unabated in most of the countries where
The strong earnings increase in spite of this is partly due to good contributions from our two most recent acquisitions. But there are also three other important reasons. First of all, we gained early knowledge of the coronavirus pandemic and how to handle it from our subsidiaries in
Secondly, we had already initiated a comprehensive efficiency and savings programme during the autumn of 2019. We were therefore able to rapidly expand it to
The third and most important reason is that
During the third quarter, we noted a gradual recovery in demand in all segments. Toward the end of the quarter, sales were in line with 2019. Combined with an improved gross margin and sharply reduced costs, the recovery led to a strong increase in operating profit and operating margin. The cost level deserves special mention. The savings programme of
Our acquisition strategy has also been a strong asset during the year with strong earnings contributions by our most recent acquisitions, HT BENDIX and
The coronavirus pandemic is a unique event. We have to accept that it brings uncertainty and new risks. We are carefully monitoring the development, and we always prioritize health and safety. But we also want to offer our customers, employees and owners stability and security moving forward. Our lower cost base, stable margin and strong cash flow generate flexibility and strength. In this way, we stand well equipped for various potential market scenarios. And we can also continue the investments in our Leadership strategy.
The most important factor for our successful performance to date is obviously our employees, who comprise more than 1,300 “Solutionists” in 28 countries. I want to extend my warm thanks to all of you who have achieved outstanding results thanks to fantastic flexibility and a sound business sense. That’s what enables us to focus on our customers and to look forward to continued profitable growth.
President and CEO
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Contact
CEO
+46 370 69 69 00
jorgen.rosengren@bufab.com
Marcus Söderberg
CFO
+46 370 69 69 66
marcus.soderberg@bufab.com
This information is such that
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- Interim report Q3 2020 English
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