|[October 18, 2013]
G & L Beijer: G & L Beijer Nine-Month Report 2013
MALMÖ, Sweden --(Business Wire)--
G & L Beijer (STO:BEIJB)
Net sales amounted to SEK 5,006.1M (5,215.0).
Operating profit before one-time items amounted to SEK 313.0M (331.2).
Including one-time items, profit for the first three quarters of 2013
was SEK 278.8M.
Net profit for the period excluding one-time items amounted to SEK
208.0M (234.3). Including one-time items, net profit for the period was
SEK 183.0M (256.3).
Profit per share excluding one-time items amounted to SEK 4.72 (5.34)
and to SEK 4.13 (5.86) including one-time items.
Strong third quarter with a six per cent growth in sales compared with
the corresponding quarter in the previous year. Operating profit
increased by 20 per cent for the same period.
G & L Beijer is a technology-oriented trading Group which, through a
combination of added-value agency products and products of the company's
own development, offers competitive solutions within refrigeration and
G & L Beijer enjoyed a strong development during the third quarter of
2013, both when compared with the corresponding quarter in the previous
year and with the previous quarters of the current year. The third
quarter of 2013 was the Group's best individual quarter so far with
regard to both sales and results for the current operation.
Accumulated, consolidated sales are currently four per cent lower than
for the corresponding period in the previous year, SEK 5,006.1M
(5,215.0). When adjusted for currency effects as a result of the strong
SEK, sales were unchanged compared with the same period in the previous
Sales for the third quarter increased by approximately six per cent to
SEK 1,830.4M (1,733.9). Currency effects affected sales marginally
during the period. The warm weather in Europe during the summer favoured
Group sales. The increased sales for the third quarter broke a negative
trend of five quarters, characterised by weak demand in Europe.
The increase for the quarter comprised all regions and virtually all
countries in which the Group operates. The Nordic countries reported
strong development as did the United Kingdom and Ireland. Southern and
eastern Europe have stabilised and also increased their sales. In
cntral Europe sales turned and showed growth. As earlier in the year,
Southern Africa and Asia continued to enjoy strong volume growth.
Consolidated operating profit excluding one-time items of SEK 34.2M
amounted to SEK 313.0M (331.2) for the nine-month period. Including
one-time items, operating profit was SEK 278.8M for 2013. Operating
profit for the third quarter increased by 21 per cent to SEK 146.7M
(121.1) compared with the corresponding period in the previous year. The
improved result for the third quarter is explained by increased sales
volumes and positive effects from the structural measures initiated
during the second quarter. The measures, which generate gradual effects,
are expected to produce total annual savings of approximately SEK 25M.
The Group's financial income/expense was SEK -23.8M (-2.3) for the first
nine months. Financial income/expense in 2012 included a capital gain of
SEK 22.0M from the divestment of a participation in an associated
company. Financial income/expense for the third quarter was SEK -8.8M
(-10.1). Profit before tax amounted to SEK 255.0M (328.9) for the first
three quarters and to SEK 137.9M (111.0) for the third quarter. Profit
after tax was SEK 183.0M (256.3) for the nine-month period and SEK
100.2M (83.9) for the third quarter. Profit per share amounted to SEK
4.13 (5.86) for the nine-month period. Excluding one-time items, profit
per share was SEK 4.72 (5.34) for the same period.
Other financial information
Consolidated capital expenditure, including acquisitions, amounted to
SEK 41.2M (69.1) for the first three quarters. Liquid funds, including
unutilised bank overdraft facilities, were SEK 513.1M (469.5) on 30
September 2013. Shareholders' equity amounted to SEK 2,305.1M (2,340.4).
The net debt was SEK 1,302.2M (1,324.4). The equity ratio amounted to
44.0 per cent (44.3). The average number of employees during the period
was 2,119 (2,127).
In April, G & L Beijer acquired the Danish refrigeration wholesaler, FK
Teknik, which reported sales of approximately SEK 32M in 2012 and showed
good profitability. The company, founded in 1956, enjoys a very good
reputation in the market. FK Teknik has five employees. The acquisition
is a step forward in a consolidation of the Danish market. G & L Beijer
already has a strong position through its existing operation in Denmark.
The acquisition is deemed to have a marginal positive effect on G & L
Beijer's profit per share. FK Teknik is included in G & L Beijer's
accounts from 1 April 2013.
In June, the Board of Directors appointed Per Bertland as the new
Managing Director and CEO of G & L Beijer. Per Bertland took up his
duties on 1 July 2013. He has worked in different functions within the G
& L Beijer Group since 1990. He has been Head of the Beijer Ref business
area and a Member of the Executive Management.
The operations of the G & L Beijer Group are affected by a number of
external factors, the effects of which on the Group's operating profit
can be controlled to a varying degree. The Group's operations are
dependent on the general economic trend, especially in Europe, which
controls the demand for G & L Beijer's products and services.
Acquisitions are normally linked with risks such as, for example, staff
defection. Other operating risks, such as agency and supplier
agreements, product responsibility and delivery undertaking, technical
development, warranties, dependence on individuals, etc., are
continually being analysed and, when necessary, action is taken to
reduce the Group's risk exposure. In its operations, G & L Beijer is
exposed to financial risks such as currency risk, interest risk and
liquidity risk. The parent company's risk picture is the same as that of
the Group. For further information, see G & L Beijer's Annual Report.
- The Year-End Report for 2013 will be published in February 2014.
- The Annual Report for 2013 will be published in April 2014.
Malmö, 18 October 2013
G & L Beijer AB (publ)
Per Bertland, CEO
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