q2 2019 presentation - bufab group · net sales grew by 8%, whereof 5% organic somewhat higher...
TRANSCRIPT
Q2 2019Presentation
July 18, 2019
Second quarter
Q2 2019 In Brief• Sales up +11%
o Somewhat lower underlying demando Order intake slightly below saleso Despite this: organic growth 3% due to increased share
• Operating profit improved over strong comparableso Lower gross margin, but also lower percentage of operating expenseso EBITA improved in both segments, margin slightly down at 9.5%o International: good result, but margin slightly downo Sweden: recovery in gross margin and good cost control
• Strong cash flow
• Acquisition HT BENDIX in July: SEK 500m sales, good margin
• Continued investments in Leadership 20202
EBITA Q2 2018 98Currencies +3
Volume +7
Price/cost/mix/other -4
Acquisitions -1
EBITA Q2 2019 103
3
Second quarter
Financial highlights, GroupQuarter 2 Δ Jan–June Δ 12-months
rolling Full year
SEK million 2019 2018 % 2019 2018 % 2018/19 2018
Order intake 1,080 979 10 2,164 1,923 13 4,039 3,798
Net sales 1,089 980 11 2,180 1,925 13 4,041 3,786
Gross profit 303 282 8 607 559 9 1,136 1,088
% 27.8 28.8 27.8 29.0 28.1 28.7
Operating expenses -200 -184 9 -385 -355 8 -751 -721
% 18.4 18.8 17.6 18.4 -18.6 19.0
Operating profit (EBITA) 103 98 5 222 204 9 385 367
% 9.5 10.0 10.2 10.6 9.5 9.7
Financial development, Group
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5
10
15
20
25
Perc
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Quarterly Net Sales growthOrganic growth Acquisitions and currency translation
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LTM
EBI
TA, S
EK m
illion
LTM
Net
Sal
es, S
EK m
illion
s
Net Sales EBITA
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Second quarter
Second quarter
Segment International
Net sales grew by 8%, whereof 5% organic Somewhat higher underlying demand and increased market share
Gross margin slightly down at 29.6%
EBITA increased only marginally but 1H development strong
Continued investment in strategic areas
EBITA Q2 2018 77Currencies +2Volume +13Price/cost/mix/other -14Acquisition 0EBITA Q2 2019 79
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Quarter 2 Δ Jan–June Δ 12-monthsRolling Full year
SEK million 2019 2018 % 2019 2018 % 2018/19 2018
Order intake 725 675 7 1,450 1,322 10 2,776 2,648
Net sales 730 676 8 1,460 1,323 10 2,752 2,615
Gross profit 216 202 7 434 394 10 828 788
% 29.6 29.9 29.7 29.8 30.1 30.1
Operating expenses -137 -125 10 -269 -245 10 -522 -498
% 18.8 18.5 18.4 18.5 19.1 19.1
Operating profit (EBITA) 79 77 3 165 149 11 306 290
% 10.9 11.4 11.3 11.3 11.1 11.1
Second quarter
Financial development, International
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LTM EBITA, SEK m
illion
LTM
Net
Sal
es, S
EK m
illion
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Net Sales EBITA
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35
Perc
ent
Quarterly Net Sales growthOrganic growth Acquisitions and currency translation
6
Net sales up by 18%, whereof 19% due to the acquisition of Rudhäll Lower underlying demand and unchanged market share
Gross margin down year-on-year, but despite weak SEK stronger than recent quarters EBITA improvement due to price increases, cost control and the
acquisition of Rudhäll Focus on price and sourcing savings to restore gross margin
EBITA Q2 2018 34Currencies +1
Volume -6
Price/cost/mix/other +7
Acquisition +2
EBITA Q2 2019 37
Segment Sweden
7
Second quarter
Quarter 2 Δ Jan–June Δ 12-monthsrolling
Full year
SEK million 2019 2018 % 2019 2018 % 2018/19 2018
Order intake 355 304 17 714 601 19 1,262 1,149
Net sales 360 304 18 719 602 20 1,289 1,172
Gross profit 93 87 7 184 176 5 331 323
% 25.8 28.6 25.6 29.2 25.7 27.6
Operating expenses -56 -53 5 -109 -100 9 -206 -197
% 15.5 17.4 15.1 16.6 16.0 16.8
Operating profit (EBITA) 37 34 8 75 76 -3 125 126
% 10.2 11.3 10.5 12.6 9.7 10.8
Second quarter
Financial development, Sweden
-10
-5
0
5
10
15
20
25
Perc
ent
Quarterly Net Sales growthOrganic growth Currency translation effects and acquisition
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LTM EBITA, SEK m
illion
LTM
Net
Sal
es, S
EK m
illion
s
Net Sales EBITA
8
Second quarter
Acquisitions since 2014
9
Acquisition of HT BENDIX A/S in Denmark in June/July Strong complement to existing business in the Nordics Annual sales of SEK ~500m Operating margin approximately 10%
Second quarter
EBITA Bridge
10
Group International Sweden Other
EBITA Q2 2018 98 77 34 -13
Currency +3 +2 +1 0
Volume +7 +13 -6 0
Price/cost/mix/other -4 -14 +7 +3
Acquisitions -1 0 +2 -3
EBITA Q2 2019 103 79 37 -13
Outlook
Summary and outlookQ2 2019 in summary • Continued execution of strategy, and significant investments in Leadership• Somewhat lower organic growth and order intake • Improved operating profit in both segments and strong cash flow
Outlook• Priorities going forward
o Continue investment in Leadership 2020 strategy
o Focus on implementation and results, e.g., sourcing savings
o Realize potential for internal efficiency gains
• Good confidence in continued good development despite market uncertainty
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12 www.bufab.com
Q&A
Q&A