Annual report 2017 for Beijer Electronics Group
In 2017 Beijer Electronics Group focused on adapting its organization and fine-tuning its operations, as well as more offensive initiatives. The Group has now created excellent potential for profitable, healthy growth in line with the Group’s targets. All this is reviewed in Beijer Electronics Group’s Annual report, which has been uploaded to the company’s website today in English-language version: www.beijergroup.com.
In 2017, Beijer Electronics Group could reverse the negative trend of falling sales. The Group achieved organic growth of 8%, which is somewhat above the long-term target. Order intake increased by 10%. The result, on the other hand, was still unsatisfactory. EBIT margin was 1.5%―target is a 10% margin. One explanation for the Group’s low earnings are the significant product development initiatives, and selective actions in marketing and sales in 2017. Expenditure on development was 148 MSEK, or 12% of sales.
CEO Per Samuelsson writes in his comments that the initiatives are viewed as investments in growth, and that they are expected to pay off soon. The product range has been regenerated in 2017, and there will be more launches in 2018.
The Group is a company operating in a large and growing global sector. Digitalization and connectivity are strong driving forces in the market. Urbanization, investments in infrastructure, energy etc. are also contributors to this growing market. Meanwhile, customer needs for different solutions are changing. The share of software solutions is growing, and the Industrial Internet of Things is proliferating into a growing array of segments.
These various trends are benefiting Beijer Electronics Group, because the Group’s new strategy builds on these changes. The Group’s new direction, with mainly proprietary products and services, also generated a higher gross margin than previously. This offers more leverage in earnings given higher sales. After its major initiatives, the Group expects that expenses for development will largely remain at current levels. For the full year 2018, the Group expects to increase sales and earnings from year-2017 levels.
In conjunction with the Annual report, Beijer Electronics Group presents its first Sustainability report, which is summarized in the Annual report. A Swedish version of the complete Sustainability report is available on the Group’s website, and an English version will be uploaded shortly.
The printed English-language Annual report will be distributed shortly to those who have registered their intention to receive it via Beijer Electronics Group’s subscription service. The Annual report is also available to order from the company by phone on +46 (0)40 35 86 00 or email: info@beijergroup.com.
For more information please contact:
President and CEO, Per Samuelsson, tel 46 (0)40 35 86 10, mobile 46 (0)708 58 54 40
Executive VP and CFO Joakim Laurén, tel 46 (0)40 35 84 96, mobile 46 (0)703 35 84 96.
Beijer Electronics Group is a high-tech innovator active in smart automation and networks. The Group’s open software, hardware and IIoT solutions help customers optimize processes and create reliable secure communication, complete with leading-edge user experiences. Since its start-up in 1981, Beijer Electronics Group has evolved into a multinational group with sales 1.2 billion SEK 2017.
The company is listed on the NASDAQ OMX Nordic Exchange Stockholm’s Small Cap list under the ticker BELE. www.beijergroup.com
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