G & L Beijer AB Three-Month Report 2013
- Net sales amounted to SEK 1,463.8M (1,654.8).
- Operating profit was SEK 48.7M (81.1).
- The period’s result excluding one-time items amounted to SEK 32.4M (57.3).
- Profit per share amounted to SEK 0.70 (1.30) excluding one-time items.
- Acquisition of the Danish company, FK Teknik A/S, after the end of the reporting period.
G & L Beijer is a technology-oriented trading Group which, through a combination of added-value agency products and products of the company’s own development, offers competitive solutions within refrigeration and air conditioning.
Sales
G & L Beijer’s sales fell by 12 per cent to SEK 1,463.8M (1,654.8) for the first quarter. Exchange rate fluctuations, mainly as a result of the stronger SEK, affected sales negatively during the quarter compared with the previous year. Adjusted for this, sales fell by approximately six per cent. Fewer invoicing days, partly as Easter fell in March this year, also affected the comparative figures. Excluding the aforementioned effects, sales fell by approximately three per cent for the quarter. In addition, a lower world market price for refrigerants, as well as generally weaker demand in Europe, affected sales negatively. As a consequence, sales fell in all regions in Europe. However, the operations in southern Africa and Thailand developed positively with rising sales in the respective region.
G & L Beijer normally has a seasonal variation in sales and results with relatively stronger second and third quarters, whilst the first and fourth quarters are relatively weaker. The pattern was strengthened with the acquisition in 2011 of Toshiba’s operation within air conditioning and heating in Europe.
Results
Consolidated operating profit amounted to SEK 48.7M (81.1) for the first quarter. The decrease in operating profit is explained by lower sales volume and by currency effects on translation of foreign currency into SEK. At the same time, the previous year’s savings programme has made an impact which has reduced the fall in profit. In addition, the first quarter of 2012 was a relatively strong period from a historic viewpoint.
The Group’s financial income/expense amounted to SEK -5.4M (15.3). Financial income/expense in 2012 included a capital gain of SEK 22.0M from the divestment of a participation in an associated company. Profit before tax amounted to SEK 43.3M (96.4). Excluding the capital gain, profit before tax for the first quarter of 2012 amounted to SEK 74.4M. Profit after tax was 32.4M (79.3). Excluding the capital gain, profit after tax for the first quarter of 2012 amounted to SEK 57.3M. Profit per share amounted to SEK 0.70 (1.82). Excluding the capital gain, profit per share was SEK 1.30 in 2012.
Other financial information
Consolidated capital expenditure, including acquisitions, amounted to SEK 6.0M (39.7) for the first quarter of 2013. Liquid funds, including unutilised bank overdraft facilities, were SEK 629.1M (751.1) on 31 March 2013. Shareholders’ equity amounted to SEK 2,329.5M (2,454.0). The net debt was SEK 1,121.4M (1,104.5). The equity ratio amounted to 47.4 per cent (46.5). The average number of employees during the period was 2,116 (2,093).
Significant events
After the end of the reporting period, G & L Beijer acquired the Danish refrigeration wholesaler, FK Teknik, which reported sales of approximately SEK 32M in 2012 and showed good profitability. The company, founded in 1956, enjoys a very good reputation in the market. FK Teknik has five employees. The acquisition was a step forward in the consolidation of the Danish market. G & L Beijer already has a strong position through its existing operation in Denmark. With the acquisition, the position will be strengthened further. The acquisition is deemed to have a marginal positive effect on G & L Beijer’s profit per share. FK Teknik is included in G & L Beijer’s accounts from 1 April 2013.
Risk assessment
The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operations are dependent on the general economic trend, especially in Europe, which controls the demand for G & L Beijer’s products and services. Acquisitions are normally linked with risks such as, for example, staff defection. Other operating risks, such as agency and supplier agreements, product responsibility and delivery undertaking, technical
development, warranties, dependence on individuals, etc., are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operations, G & L Beijer is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group. For further information, see G & L Beijer’s Annual Report.
Financial information
- The Six-Month Report will be published on 17 July 2013.
- The Nine-Month Report will be published on 18 October 2013.
- The Year-End Report for 2013 will be published in February 2014.
- The Annual Report for 2013 will be published in April 2014.
Malmö, 25 April 2013
G & L Beijer AB (publ)
Joen Magnusson, Managing Director
For further information, please contact:
Joen Magnusson, CEO
switchboard +46 40 35 89 00, mobile +46 709 26 50 91
Jonas Lindqvist, CFO
switchboard +46 40 35 89 00
This interim report has not been the subject of an examination by the company’s auditors.
www.beijers.com