Beijer Alma

• Net revenue increased to MSEK 1,461 (1,135)

• Operating profit declined to MSEK 190 (197), corresponding to an operating margin of 13.0 percent (17.3)

• Profit after net financial items increased to MSEK 189 (188)

• Earnings per share including discontinued operations increased to SEK 2.91 (2.45)

• Order bookings increased to MSEK 1,437 (1,174)

• Cash flow from operating activities including discontinued operations totaled MSEK 247 (175)

• Net debt amounted to MSEK 1,677

• An agreement to divest Habia Cable was entered into on July 5, 2022

• John Evans’ Sons was acquired on July 8

Group
Demand in the quarter was generally stable and favorable, although the situation varied between geographic regions and customer segments. The operations in the Nordic region delivered a strong performance and organic growth, while demand in the rest of Europe and Asia was impacted to a greater degree by external factors, such as the war in Ukraine and Covid-19. Continued high inflation has led to increased costs, which largely have been offset through price increases.

Subsidiaries
Lesjöfors noted continued stable demand, although with certain variations between geographic regions and customer segments. While the Chassis Springs business area displayed growth across most of Europe, the discontinuation of sales to Russia and decline in sales to Ukraine had a negative impact on both revenues and earnings. Within Industrial Springs, the Nordic region remained the strongest region. Asia was impacted by China’s Covid-related lockdowns, while growth in Central Europe was limited due to the indirect effects of customer and supplier disruptions, for example in the automotive industry. The acquired companies Alcomex and Plymouth Spring both contributed favorable profitable growth. Towards the end of the quarter, Lesjöfors’s largest acquisition to date – John Evans’ Sons in the US – was announced, an acquisition that will be strategically important going forward.

Habia Cable had another strong quarter, with favorable order bookings, revenues and profitability. Demand was strong in the Industry and Telecom customer segments as well as the defense market.

Beijer Tech experienced continued favorable demand in the Nordic market in both of its business areas during the quarter. Despite challenges in the supply chain and high inflation, the company reported healthy organic profitable growth. Recent acquisitions also contributed to this positive result.

Strategy and acquisitions
The important acquisition of John Evans’ Sons, with its position in springs for the medical device industry and in new product areas, strengthens Lesjöfors’s presence in the US market significantly. Like Lesjöfors, the company has a diversified customer base, long-standing customer relationships and a focus on customer-centric product development. Together with Lesjöfors’s other subsidiaries, it will create further opportunities for profitable growth.

In early July, it was announced that Beijer Alma had entered into an agreement to divest Habia Cable following a strategic review in the spring. Beijer Alma has owned Habia Cable since 1985 and is now handing over the reins to the German cable company HEW Kabel, which will create a European group specializing in custom-designed cables. At the same time, the divestment will also allow us to continue creating value through investments and acquisitions in Lesjöfors and Beijer Tech, thereby strengthening our strategic focus. I am confident when it comes to our prospects for continuing to generate profitable growth.

Discontinued operations
In the interim report for the second quarter 2022, Beijer Alma’s former subsidiary Habia Cable is reported as discontinued operations in accordance with IFRS 5. The remaining business areas represents continuing operations. Comments and figures relate to continuing operations unless otherwise specified. Comparison figures in the consolidated income statement have been recalculated.