Q2 2025 Bergman & Beving AB Earnings Call Transcript
Key Points
- Bergman & Beving AB (FRA:BLRB) reported a 12% increase in EBITA and a 12% rise in earnings per share, reversing a previous trend of stagnant EPS growth.
- The company successfully maintained a strong gross margin and reduced inventory levels by SEK180 million organically compared to the previous year.
- All three divisions of the company reported increased profits, indicating a broad-based improvement across the group.
- The acquisition strategy is on track, with three acquisitions contributing positively to EBITA growth, including the highly profitable Spraylat and Levypinta.
- The company has achieved 19 consecutive quarters of profit growth, demonstrating resilience despite challenging market conditions.
- The market remains tough, particularly in the construction and industrial sectors, with a 3.4% decrease in the number of employees in these sectors in the Nordics.
- Organic revenue decreased by 3%, and there was a small negative currency effect of 1%, indicating challenges in achieving organic growth.
- The Safety Technology division, although improved, still operates below the desired EBITA margin of 10%, currently at 8%.
- The company faces uncertainties in the industrial sector, with no immediate signs of market improvement, impacting future growth prospects.
- Net debt levels are expected to increase due to acquisitions, with a long-term target of maintaining a net debt-to-EBITDA ratio between 2 and 3.
(technical difficulty) Please go ahead.
Good morning, everyone, and welcome to the Q2 report of Bergman & Beving. This is Magnus Soderlind, and I have beside me here, Peter Schon, our CFO. So let's begin then.
Just to start with some highlights from the second quarter. So we are proud to announce that we increased earnings. We increased profitability and earnings per share this quarter and the EBITA increased 12%, and the profitability that we measure as profit-to-working capital, increased 6 percentage units.
And also, I'm very glad that we now -- despite we had 19 consecutive quarters with increased profit, but not an increased earnings per share, that we now have reversed that trend and have a positive development of earnings per share with 12% and that is, of course, due to that we have (inaudible) comparable financial net figures due to kind of the interest rate development mainly, I would say.
We are doing this despite a continued tough market,
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