Stable earnings despite negative currency effect. Favourable development in segment International. Acquisition of Flos B.V.
First quarter 2015
- Net sales rose to SEK 609 million (552), an increase of 10 percent. Adjusted for currency effects and acquisitions, sales increased 4 percent.
- Order intake exceeded net sales.
- Operating profit amounted to SEK 49 million (33) and adjusted operating profit to SEK 49 million (52).
- Earnings per share increased to SEK 0.88 (0.45).
- Flos B.V. was acquired at the end of February. Net sales for 2014 totalled approximately SEK 160 million.
GROUP IN BRIEF (for definitions, see page 16)
| 12 month rolling | ||||||
| Quarter 1 | D | Full year | D | |||
| SEK millions | 2015 | 2014 | % | 2014/15 | 2014 | % |
| Order intake | 616 | 563 | 9 | 2,248 | 2,195 | 2 |
| Net sales | 609 | 552 | 10 | 2,255 | 2,198 | 3 |
| Gross profit | 170 | 162 | 5 | 649 | 641 | 1 |
| Gross margin,% | 28.0 | 29.5 | 28.8 | 29.2 | ||
| Operating profit | 49 | 33 | 46 | 189 | 174 | 9 |
| Operating margin,% | 8.0 | 6.0 | 8.4 | 7.9 | ||
| Adjusted operating profit | 49 | 52 | -6 | 189 | 192 | -2 |
| Adjusted operating margin,% | 8.0 | 9.4 | 8.4 | 8.7 | ||
| Profit after tax | 33 | 17 | 97 | 128 | 112 | 15 |
| Earnings per share | 0.88 | 0.45 | 97 | 3.37 | 2.94 | 15 |
CEO'S OVERVIEW
Underlying demand during the first quarter of 2015 remained cautious and in line with the preceding quarter. Compared with the first quarter of 2014, our assessment is that underlying demand in segment Sweden is somewhat weaker, while for International it is essentially unchanged.
Our strategic efforts in our sales organisation continue to generate results in the form of increased market shares, particularly in the International segment. Growth in this segment is largely attributable to all markets and many different customers. In segment Sweden, net sales declined. This is partly due to customers choosing to relocate their production abroad, which favours sales in segment International, and that a major customer of one of our manufacturing units in Sweden has chosen to proceed with its own manufacturing.
Overall, the Group's organic growth is mainly attributable to market share gains.
The US dollar continued to strengthen against the Swedish krona. In addition, the euro weakened against the dollar during the quarter. Compared with the first quarter of 2014, our purchasing costs rose SEK 14 million due to exchange-rate fluctuations. We have taken measures in the form of price increases for customers, reduced purchasing prices and general cost savings. Combined with higher sales volumes during the quarter, we were thus able to maintaining a stable operating profit. We will remain highly active in implementing these measures throughout 2015.
Value-generating acquisition is a key component of Bufab's growth strategy. During the first quarter, we thus acquired the Dutch company, Flos B.V. This company is a positive complement to Bufab and, as a result of the acquisition, we are strengthening our position in the expanding segment for specialised C-Parts. The acquisition will make a positive contribution to Bufab's earnings per share as of the second quarter.
Despite some positive signals, we have so far seen no enduring improvement in underlying demand. The exchange rates have continued to change in a manner that is unfavourable for Bufab. However, during the quarter, we have demonstrated the strength in our business model and organisation by succeeding in compensating unfavourable external factors with increased market shares and improved efficiency. Going forward, we intend to continue Bufab's long-term favourable development in the same manner.
Jörgen Rosengren, President and CEO
CONFERENCE CALL
A conference call will be held on April 28, 2015 at 10.00 CET. Jörgen Rosengren, President & CEO and Thomas Ekström, CFO will present the result. The call will be held in English.
In order to participate, please use one of the following numbers; +44 (0) 1452 54 1003, UK 08448719461, Sweden 0856619445 or US 16467412120. Conference code, 32935290.
Please dial in 5-10 minutes ahead in order to register.
This information is in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ Stockholm. The information was submitted for publication at
April 28, 2015 at 08.00.
CONTACTJörgen RosengrenCEO +46 370 69 69 01 jorgen.rosengren@bufab.com Boel Sundvall Communications & IR +46 370 69 69 61 boel.sundvall@bufab.com | Thomas Ekström CFO +46 370 69 94 01 thomas.ekstrom@bufab.com |
ABOUT BUFAB
Bufab Holding AB (publ), Corporate Registration Number 556685-6240, is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, etc.). Bufab's Global Parts ProductivityTM customer offering aims to improve productivity in customers' value chain for C-Parts.
Bufab was founded in 1977 in Småland and is an international company with operations in 23 countries. The head office is located in Värnamo, Sweden and Bufab has about 850 employees. Bufab's sales for 2014 amounted to SEK 2.2 billion and adjusted operating margin was 9 percent. The Bufab share is listed on NASDAQ Stockholm, under the ticker "BUFAB."
