Henrik Perbeck, President and CEO Henrik Perbeck, President and CEO

Strong cash flow and acquisition-driven growth with lower volumes in industrial segments

Group

Demand in the quarter was varied across the Group’s diversified customer base. Growth in the quarter was driven by acquisitions. Volumes in the broad industrial segments were somewhat lower, while several other customer segments posted good growth, such as the automotive aftermarket, medical technology and other niches. Lower volumes resulted in margin pressure in certain operations, which was addressed with savings and restructuring measures. Cash flow remained strong as a result of our focus on gradually improving our inventory levels and working capital as well as more stable supply chains.

Subsidiaries

Lesjöfors noted mixed demand, with major variations between customer segments. The Chassis Springs business area posted strong growth. Volumes remained high in the beginning of autumn, driven by stable demand from end customers and normalized inventory levels among wholesale customers. Within Industrial springs, demand decreased somewhat in the Nordics, the US and Asia. In Europe, the UK posted growth while several operations in Central Europe faced greater margin pressure. A number of measures were taken, such as savings and local restructuring, to ensure positive profitability and growth over the long term. The situation varied between customer segments. For example, demand in medical technology was good, while demand for springs was weaker among end customers in the construction industry and automotive manufacturing. The acquisitions of Telform, Amatec and Tollman Spring over the past year supported growth for the quarter.

Demand was stable in both of Beijer Tech’s business areas. Order bookings increased organically, primarily due to new projects, but volumes in industrial trading also remained at favorable levels. Several of our niche companies noted good demand, driven by trends outside of industry. The year’s acquisitions of Botek and Finn Lamex are examples of this, and have had an excellent start in our Group.

Strategy and acquisitions

The operating environment remains dominated by uncertainty regarding demand, higher inflation and interest rates. This means that, overall, we are continuously performing a balancing act between growth initiatives and savings. The Group is strong and robust thanks to our diversified global customer base. No new acquisitions were made in the quarter, but our acquisition strategy is long term. We are continuing to build relationships with attractive companies that can strengthen the Group with future profitable growth.

Henrik Perbeck, President and CEO

Q3 in summary

2023 Q3 2022 Q3 Change % Rolling 12 months 2022 full-year
Net revenues, MSEK 1,676 1,483 13.0 6,650 5,866
Operating profit, EBIT 225 200 12.6 856 798
Operating margin, EBIT, % 13.4 13.5 – 12.9 13.6
Operating profit/loss EBIT 234 200 16.8 870 773
Profit after net financial items, EBIT 211 187 13.2 693 704
Earnings per share, SEK ** 2.61 2.71 –3.40 14.70 15.92
Order bookings, MSEK 1,666 1,377 21.0 6,711 5,682
Cash flow from operating activities ** 343 150 – – 485
Net debt, MSEK * 2,288 2,420 –5.5 – 1,833
Net debt/equity ratio, % * 59.2 74.3 – – 44.6

* comparison periods not recalculated in relation to Discontinued operations
** includes Discontinued operations

Condensed cash-flow statement, Group. MSEK

2023 Q3 2022 Q3 2022 full-year
Cash flow from operating activities before change in working capital and capital expenditures 245 243 958
Change in working capital, increase (–) decrease (+) 98 –93 –473
Cash flow from operating activities 343 150 485
Investing activities –50 –57 –169
Divested companies less cash and cash equivalents – – 663
Acquired companies less cash and cash equivalents – –996 –1,285
Cash flow after capital expenditures 293 –903 –306
Financing activities –201 938 561
Change in cash and cash equivalents 92 35 255
Whereof cash and cash equivalents from discontinued operations – 26 600
Cash and cash equivalents at beginning of period 431 404 481
Exchange-rate fluctuations in cash and cash equivalents –10 1 19
Cash and cash equivalents at end of period 513 440 754

Lesjöfors

2023 Q3 2022 Q3 Change % Rolling 12 months 2022 full-year
Net revenues 1,197 1,045 14.5 4,706 4,073
Net revenues, Industry 983 869 13.1 3,829 3,259
Net revenues, Chassi Springs 215 176 21.8 969 815
Operating profit EBITA 190 165 15.0 825 675
Operating margin, EBITA % 15.9 15.8 – 15.8 17
Operating profit, EBIT 175 154 13.2 688 641
Operating margin, EBIT % 14.6 14.8 – 14.6 15.7
Operating profit, EBIT 183 154 18.8 703 616
Order bookings 1,202 1,020 17.8 4,723 4,022

Beijer Tech

2023 Q3 2022 Q3 Change % Rolling 12 months 2022 full-year
Net revenues 478 436 9.8 1,943 1,790
Net revenues, Industrial Products 323 279 16.0 1,280 1,136
Net revenues, Fluid Technology 155 157 –1.3 663 655
Operating profit EBITA 60 55 10.2 216 199
Operating margin, EBITA, % 12.6 12.6 – 11.1 11.1
Operating profit, EBIT 56 52 7.8 198 186
Operating margin, EBIT, % 11.7 11.9 – 10.2 10.4
Operating profit, EBIT 56 52 7.7 198 186
Order bookings 465 357 30.3 1,988 1,660

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