Strong and profitable growth
2021 was a strong year for Beijer Alma. Despite global uncertainty, there was strong demand for our products and disruptions to supply chains were successfully managed. There was a sharp rise in order bookings, net revenues and operating profit. Several acquisitions also contributed to profitable growth.
A pandemic year that became strong
2021 saw higher order bookings and net revenues as well as improved operating margins for many of the Group’s companies, often at record-breaking levels. Industrial recovery was strong and demand was high despite the continued effects of the pandemic. Consequently, supply chains were strained, leading to higher raw material prices and freight costs as well as shortages of energy and materials.
Our companies managed the situation actively in order to ensure access to materials and implement necessary price increases. The financial impact on the Group was limited thanks to a combination of this hard work and our well-diversified customer base.
Acquisitions and investments
Our investment strategy is based on profitable growth, and it was an active year for acquisitions. A total of five complementary acquisitions were completed and will strengthen our subsidiaries’ operations. Together, these acquisitions will increase our revenues by more than MSEK 700 on an annual basis.
It is particularly worth noting that Lesjöfors made the largest acquisition in its history when it acquired the Dutch company Alcomex, a transaction that strengthens Lesjöfors’s position as a leading manufacturer of industrial springs.
Beijer Tech continued to actively pursue acquisitions, creating value through three acquisitions in both existing and new niches. The pace of organic investment was also high, primarily through investments in machinery and capacity expansion.
Habia Cable is currently building a new cable harness factory in Poland, which will be put into operation in the second half of 2022.
Lesjöfors – a stronger business
Demand i Lesjöfors’s Industry and Chassis Springs business areas remained strong on a global level. Chassis Springs noted high demand from end customers across Europe after a cold winter. Thanks to wellbalanced inventory levels and active sales efforts, our assessment is that Lesjöfors increased its market share.
Demand was high in Industry as well, primarily in the Nordic region. Production limitations experienced by some of our customers had a marginal impact, but the strength of Lesjöfors’s well-diversified customer base became even more evident during the year. The pace of Lesjöfors’s own business development remains high as well, focusing on finding more synergies, increasing automation and digitization, developing more sustainable solutions and, not least, growing through further acquisitions.
Alcomex adds additional geographic coverage and market leadership in the new door springs product area. Toward the end of the year, Lesjöfors also acquired Plymouth Spring Company in the US, a market where Lesjöfors intends to grow more.
Habia – product development for the future
Habia delivered on project contracts in the offshore, nuclear power and defense fields, especially at the beginning of 2021. Demand was strong among industrial and telecom customers throughout the year.
Habia experienced a data breach in the spring that resulted in a temporary loss of production. This had a limited impact for customers, and operations could be resumed quickly thanks to the extraordinary efforts of management and employees.
Habia has world-leading product development in several exciting niches that are of commercial interest as well as contributing to a more sustainable world. One example is cables for applications for the electric aviation of the future.
Beijer Tech – a platform for acquisitions
Beijer Tech exhibited strong and profitable growth – both organically and through new acquisitions. The company sells primarily to industrial companies in the Nordic region, where the share of proprietary and customized products is gradually increasing. Beijer Tech was also able to cope relatively well with disruptions to supply chains thanks to well-balanced inventory levels. Several rounds of price increases were implemented.
Beijer Tech is an important platform for acquisitions, both in areas close to our core operations and in entirely new niches. During the year, the company acquired Novosystems which specializes in building automation, Noxon which offers wastewater treatment solutions and Källström Engineering Systems which specializes in equipment for the growing battery industry.
More focus on the climate
Today, climate change is the most important sustainability issue for industrial companies, including Beijer Alma. Taking a forward-thinking approach to climate change is becoming an increasingly integral part of basic business know-how in order to create customer value and grow in relevant customer segments. At the same time, reporting of the climate impact through the entire value chain is evolving. One example is the EU Taxonomy. Initially this body of regulations aims at the most emission-intensive activities in business with the objective of categorizing whether and how the companies concerned are striving for a sustainable transition. With the exception of building automation, which includes energy-efficiency enhancements in properties, Beijer Alma’s component manufacturing and industrial trading are not currently covered by the taxonomy. This shows that we are well positioned in the value chain for sustainable business. We are also following the ongoing transition to a circular and sustainable society and see the taxonomy as an enabler for structure and frameworks in the sustainability area.
Our sustainability work and objectives are based on the UN Global Compact, the UN Sustainable Development Goals (SDGs) and the direct environmental impact of our Group companies. We are making progress in this area: our carbon footprint is continuing to decrease thanks to improved energy efficiency, investments in solar panels and the use of biobutanol. We are part of a value hain where a shift toward a clearer focus on sustainability can also be seen among our suppliers and customers. This year, we are also reporting an estimate of the climate impact of the raw materials with the greatest impact, thereby laying the foundation for greater understanding of our products’ climate impact, a process that will apply to the entire value chain in the future.
A group that is growing
We are entering 2022 with high ambitions, but we are also well aware of how quickly the world can change. At the time of writing, major changes have occurred in world politics that are creating considerable short-term, and potentially long-term, uncertainty.
Continuing to grow through both acquisitions and organic growth will be a top priority. The year began with two acquisitions by Beijer Tech: Swedish Microwave and Mountpac, two well-run companies we are pleased to welcome to the Group. At the same time, we see clear challenges in the form component shortages, vulnerable logistics chains and rising inflation, which must all be managed and offset. The Group is well-equipped to take advantage of opportunities and to manage these challenges.
In financial terms, we have a strong balance sheet that enables us to make sound long-term decisions. Our business model – in which we offer high customer value to a well-diversified customer base – is robust. This is made possible by all of our employees, who make business decisions every day in order to improve our operations, support our customers and ensure that the Group is sustainable in the long term. I want to thank everyone for their outstanding efforts during a very successful 2021 and start of the new year.
Henrik Perbeck, President and CEO
