Bergman & Beving Ab Class B · OMXSTO:BERG_B
Bergman & Beving Ab Class B — Q4 2023/2024 Earnings Presentation
17 slides from Bergman & Beving Ab Class B's earnings presentation, May 15, 2024
Slide 1: Interim Report
Interim Report 1 April 2023 – 31 March 2024 15 May 2024 Magnus Söderlind – CEO Peter Schön - CFO 1
Slide 2: Highlights Fourth Quarter 2023/2024
HIGHLIGHTS Fourth Quarter 2023/2024 ❖ Positive earnings trend continues, despite deteriorating market conditions ❖ Strong development in two out of three divisions ❖ No acquisition in the fourth quarter - one after the period ❖ Revenue MSEK 1,214 (1,237) ❖ Gross margin continued to strengthen to 48%
Slide 3: Acquisitions
ACQUISITIONS 1 April 2023 – 31 March 2024 Annual Revenue EBITA P/WC Division MSEK % % Q1 Tema Norge TC 45 >15 >45 Elkington BM 40 >15 >45 Itaab BM 75 >15 >45 Q2 Sandbergs TC 60 >15 >45 Ateco WS 50 >15 >45 Q3 Orbital Fabrications TC 180 >15 >45 Q4 Total 450 3
Slide 4: Continued positive EBITA trend
CONTINUED POSITIVE EBITA TREND EBITA per quarter MSEK % 140 12 ❖ EBITA increased by 12 percent to MSEK 116 (104) EBITA EBITA % 120 116 107 110 10 ❖ EBITA margin improved to 9.6 percent (8.4) 103 104 105 100 94 88 91 8 ❖ Improved Gross Margin 4 percentage units 81 84 84 78 80 73 ❖ Organic expenses de
Slide 5: Revenue development reflects a focus on high margin businesses
REVENUE DEVELOPMENT REFLECTS A FOCUS ON HIGH MARGIN BUSINESSES COMBINED WITH A WEAKER UNDERLYING MARKET Revenue per quarter Quarterly Revenue Growth, % MSEK 1 300,00 Revenue R4Q/4 1 200,00 1 100,00 1 000,00 900,00 800,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Organic Currency Acquisitions A
Slide 6: Improved gross margin
IMPROVED GROSS MARGIN Gross margin per quarter Revenue per type of products Full-year % Own Proprietary Products Other Products 50 GM R12 48 32% 30% 28% 34% 46 44 42 40 38 68% 70% 72% 66% 36 34 32 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 31 Mar 31 Mar 31 Mar 31 Mar 20/21 21/22 22/23 23/24
Slide 7: Earnings per share
EARNINGS PER SHARE SEK EPS Q R12 8,00 7,00 6,00 5,00 4,00 3,00 1,90 1,90 2,00 2,05 2,05 1,90 1,95 2,00 1,80 1,80 1,70 1,80 1,70 1,50 1,45 1,60 1,60 1,00 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20/21 21/22 22/23 23/24 7
Slide 8: Inventory
INVENTORY MSEK ITO 1 600 3,0 Inventory R12 ITO 1 500 ❖ Inventory amounted to MSEK 1,189 (1,360) 1 400 ❖ Decreased safety stock ❖ Decreased High volume - Low margin business 1 300 2,0 ❖ Improved product mix and streamlining 1 200 assortment in all companies 1 100 ❖ ITO increased despite decreased rev
Slide 9: Cash flow from operating activities
CASH FLOW FROM OPERATING ACTIVITIES MSEK 250 Cashflow R4Q/4 207 200 179 176 ❖ Cash flow from operating activities MSEK 101 (145) ❖ Seasonally weak Q4 142 145 150 133 133 ❖ Improved profitability 110 94 101 ❖ Reduced inventory levels 100 79 57 59 50 50 0 -25 -50 -36 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 10: Net debt
NET DEBT MSEK ND/EBITDA Operational Net Debt ND / EBITDA exkl IFRS 16 4,0 1 200 3,5 1 000 3,0 ❖ Operational net debt MSEK 1,057 (1,090) ❖ NetDebt/EBITDA continues to decrease 800 2,5 ❖ Acquisitions add MSEK 450 in yearly revenues ❖ Strong underlying cash flow 2,0 600 ❖ Acquisitions target remains in
Slide 11: Building Materials
Building Materials All-time high profit margin ❖ Demand from customers in commercial buildings and infrastructure remained stabil, residential still weak ❖ Revenue decreased by 9 percent to MSEK 349 (382) ❖ EBITA increased by 15 percent to MSEK 46 (40) ❖ EBITA margin improved to 13.2 percent (10.5)
Slide 12: Workplace Safety
Workplace Safety Weak demand from Nordic industrial reseller ❖ Weaker demand, especially for companies delivering to retailers ❖ Revenue MSEK 412 (425) ❖ EBITA MSEK 23 (29) ❖ EBITA margin 5.6 percent (6.8) ❖ Additional cost-saving measures were implemented ❖ Change in division leadership MSEK Revenu
Slide 13: Tools & Consumables
Tools & Consumables All-time-high result ❖ Industry customers demand weaker during the quarter ❖ Revenue MSEK 459 (438) ❖ EBITA increased by 46 percent to MSEK 51 (35) ❖ EBITA margin 11.1 percent (8.0) ❖ The profit and margin improvement is primarily related to acquired companies ❖ Luna cost measure
Slide 14: Group targets "500/ten/45"
GROUP TARGETS 500 MSEK EBIT latest FY2526 COMBINED ANNUAL ”500/ten/45” 50-80 EARNINGS MSEK ACQUISITIONS PA EBIT- >10% margin latest FY2526 PERCENTAGE OWN 75% PRODUCTS 45% latest FY2526 P/ WC latest FY2627 DIVIDEND SHARE 30-50% NET PROFIT
Slide 15: How to reach '500/ten/45'
HOW TO REACH ‘500/ten/45’ WHAT WE ALWAYS DO ❖ Profit expansion over revenue expansion ❖ B&B Focus Model for capital allocation ❖ Company-by-company strategy, goals and activities ❖ Group support – B&B Tool Box ❖ Acquisition of highly profitable B2B companies with leading position in expansive niches
Slide 16: Contact Calendar
Contact Calendar Investor Relations 16 July 2024 Peter Schön Financial Report +46 70 339 89 99 1 April 2023-30 June 2024 will be published ir@bb.se 16
Slide 17: Bergman Beving
BERGMAN BEVING
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