Press release
Financial Report 1 April 2017 - 31 March 2018
Fourth quarter (1 January 2018 - 31 March 2018)
12 months (1 April 2017 - 31 March 2018)
Significant events since the start of the operating year
CEO's comments
Additional steps in the right direction
The year ended with additional steps in the right direction, resulting in a further improvement in earnings in the fourth quarter compared with the preceding year. The past year has been extremely eventful, with major changes, restructuring and a positive trend with respect to the operating margin for the two most recent quarters. We are now aiming at significantly higher performance levels.
We noted varying signals from our main markets during the quarter. Demand from industrial customers in the Nordic region remained favourable, while the construction market slowed, mainly due to a decline in new residential construction. According to our assessment, demand for our products has remained stable since the decline in new residential construction has been offset by increases in other segments. As planned, demand from the manufacturing sector was impacted by lower sales to the TOOLS chain, where we are implementing a change in supplier agreements for goods for resale, which were previously invoiced onward via Bergman & Beving. Sales to other industry-related customers developed positively.
Overall, our share of proprietary brands continued to increase during the quarter and now amounts to 60 percent. The phaseout of products with low margins and a steady increase in the share of proprietary product brands created the necessary conditions for an improved margin. It feels particularly gratifying to highlight the Workplace Safety division, which continued to develop positively. It is also positive that the operating margin in Building Materials improved significantly compared with the low level in the third quarter. The restructuring of Tools & Consumables continued, and the outsourcing of the subsidiary Luna's logistics was completed according to plan. Although delivery problems experienced in connection with the adjustment of the logistics solution impacted the quarter negatively, the situation improved considerably toward the end of the period. The restructuring work carried out during the year improved the overall conditions in the operations and is expected to have a positive impact on profitability during the next financial year.
Acquisitions
We are continuing to pursue an active acquisition agenda and have good potential to carry out further transactions, particularly given our strong financial position. BVS Brannvernsystemer AS and Belano Maskin AB were acquired after the end of the quarter. The Building Materials division thus strengthened its position in passive fire protection, while Tools & Consumables improved its position in the attractive niche of construction and ventilation sheet-metal workers.
Pontus Boman
President & CEO
For further information, please contact:
Pontus Boman, President & CEO, Tel: +46 10 454 77 00
Peter Schön, CFO, Tel: +46 70 339 89 99
The information in this report is such that Bergman & Beving AB (publ) 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 07:45 CET on 16 May 2018.
Bergman & Beving owns and refines companies that develop and market strong brands for professional users in industry and construction, mainly in the Nordic region, the Baltic States and Poland. Bergman & Beving aims to enable successful product companies to take the next step and become leading brands in their categories. The Group currently has some 15 brands, about 1,000 employees and revenue of approximately SEK 3.8 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company's website: www.bergmanbeving.com.
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