Interim report January – March 2022
New acquisitions and favorable demand in an uncertain world
- Net revenues increased to MSEK 1,704 (1,283)
- Operating profit before items affecting comparability rose to MSEK 271 (215), corresponding to an operating margin of 15.9 percent (16.7)
- Operating profit increased to MSEK 246 (215)
- Profit after net financial items rose to MSEK 238 (208) and earnings per share to SEK 2.97 (2.73)
- Order bookings increased to MSEK 1,753 (1,330)
- Cash flow from operating activities amounted to MSEK –84 (80)
- Net debt was MSEK 1,691 (710)
Demand from the Group’s diversified customer base essentially remained favorable. Our companies succeeded in growing their order bookings, net revenues and operating profit. At the same time, we are now navigating an increasingly uncertain world. The Covid-19 pandemic is continuing to cause disruptions in China. In Europe, the war in Ukraine has resulted in enormous human suffering as well as disruptions in the world economy and global supply chains. Our focus has been on protecting the safety of our employees and their loved ones, including the Ukrainian employees at our Polish plants. It appears that the war and various sanctions could continue for some time to come. This will impact the Group directly to a certain extent, but also indirectly through our customers and suppliers, which makes the situation extremely difficult to assess. Our companies also need to handle rising inflation through further price adjustments and cost control.
Lesjöfors’s first quarter of 2022 was characterized by continued favorable demand, although the scenario varied between geographic markets and customer segments. The Chassis Springs business area experienced broad growth across Europe, but was directly impacted by the suspension of operations in Russia from early March. Within Industrial Springs, the Nordic region was the strongest. Asia was impacted to a certain degree by the lockdowns in China, and growth in Central Europe and the US was limited by indirect effects from customers and suppliers. The acquired companies Alcomex and Plymouth Spring both contributed to the company’s profitable growth.
Habia Cable delivered a strong quarter, with favorable profitability and high order bookings. Demand was strong in the Industry and Telecom customer segments. The increased activity in the defense market is increasingly being reflected in the order bookings.
Beijer Tech experienced strong demand in the Nordic market in both of its business areas during the quarter. Despite challenges in the supply chain and rising inflation, the company reported healthy organic profitable growth. The companies acquired over the past year also contributed to further growth.
We are continuing to look for attractive companies to continue our profitable growth through acquisitions. During the quarter, we welcomed two well-run Swedish companies to Beijer Tech, both of which contributed to the company’s profitable growth: Swedish Microwave, which manufactures and sells equipment for satellite communication globally, and Mountpac, which manufactures customized components. These acquisitions are contributing to higher value add in Beijer Tech and strengthening its role as a platform for exciting companies in new industrial niches.