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Beijer Ref AB: Beijer Ref Q3 2016

Weak start of the quarter but gradual improvement

Net sales for the third quarter of 2016 increased by 5.4 per cent
compared with the corresponding period in the previous year and
amounted to SEK 2,461M (2,335). The increase is mainly due to the
acquisition of HRP in the United Kingdom and Realcold in
Australia/New Zealand.

Weak month of July. Organic growth in August and September.

Operating profit for the third quarter of 2016 amounted to SEK 173M

Profit for the quarter amounted to SEK 117M (121).

Profit per share amounted to SEK 2.71 (2.82).

Comments by the CEO

Weak start of the quarter but gradual improvement

Although profit for the quarter did not reach the level of the
previous year, the third quarter of the year was one of our strongest
quarters ever. Only the month of July was the weak month of the
quarter, whilst both August and September showed growth, organically
as well as incrementally. The heatwave Europe experienced in July
last year, which at the time had a strong impact on demand, was not
repeated this year.

In our regional markets, the Nordic countries stand out negatively,
mainly due to a weaker development in Sweden. We see this as a normal
fluctuation as there is no business cycle or structural signs that
would indicate demand is declining. Central Europe shows growth,
mainly due to the fact that the acquisition of HRP in the United
Kingdom has been consolidated. In the region, we can also see a
positive development in markets such as the Netherlands, Switzerland
and Germany. The Southern Europe region was affected by the cooler
weather during July compared with the previous year. Eastern Europe
shows a positive development in Czech Republic, Slovakia, Romania and
the Baltic States. The markets in Africa also show growth in local
currency and in Asia Pacific we see an excellent development,
especially in Malaysia and New Zealand.

The work of making our own organisation even more efficient continues
through the creation of a clear structure with a country manager and
a joint back-office in every country. The United Kingdom, France, the
Netherlands and Norway are the remaining countries in which we are
currently implementing these measures which will give us a more
efficient organisation and clear cost savings.

During the quarter, we have initiated the work of strengthening our
digital competence. There are significant opportunities with
digitalisation in our sector and the objective is to develop our
digital capacity.

We are working with our own organisation and our cost side, and are
also continually evaluating new acquisition opportunities. Taken
together, the outcome for the quarter is lower than anticipated.
However, the development in August and September gives us confidence
for the next quarter.

Per Bertland

CEO, Beijer Ref

Third quarter of 2016


Beijer Ref increased its net sales by 5.4 per cent to SEK 2,461M
(2,335) for the third quarter of 2016. When adjusted for exchange
rate fluctuations and acquisitions, the organic change in sales was
-2.0 per cent. The decrease in sales is attributable to the fact that
sales for the month of July did not reach the previous year's level.
The month of July in the previous year was strongly influenced by a
heatwave through large parts of Europe.

Net sales for the first three quarters of the year increased by 8.1
per cent to SEK 6,845M (6,334). When adjusted for exchange rate
fluctuations and acquisitions, the organic sales change was 4.1 per


The Group's operating profit amounted to SEK 173M (181) for the third
quarter, equivalent to a decrease of 4.5 per cent. The result
decrease is mainly explained by the lower sales in the month of July
as described above under the section about sales.

The lower operating margin for the quarter, 7.0 per cent (7.7), is
mainly explained the fact that HRP and Realcold were acquired and
that these companies initially have lower margins that the average in
the Group.

When adjusted for exchange rate fluctuations and acquisitions, the
organic decrease in operating profit was 6.7 per cent during the
quarter. For the first three quarters of the year, operating profit
increased by 3.4 per cent to SEK 448M (443). When adjusted for
exchange rate fluctuations and acquisitions, the organic increase in
operating profit was 4.1 per cent. The Group's financial
income/expense amounted to SEK -25M (-27) for the first three months
of the year. Profit before tax was SEK 423M (406). Net profit for the
period was SEK 299M (289). Profit per share amounted to SEK 6.88

Cash flow

Cash flow from the current operation before change in working capital
was SEK 381M for the first nine months of 2016 compared with SEK 411M
for the corresponding period in the previous year. During the first
nine months of the year, the working capital increased by SEK 352M
compared with SEK 130M for the same period in the previous year, as a
result of the increased business volume and the acquisitions of HRP
and Realcold. This gives a cash flow from the current operation of
SEK 29M compared with SEK 281M in the previous year.


Consolidated capital expenditure, including acquisitions, amounted to
SEK 66M (188) for the first nine months of 2016.

Significant events during the year

During the first quarter, the UK Competition & Markets Authority (CMA)
initiated an examination of our acquisition of HRP Ltd with 15
branches in the United Kingdom. On 8 June, CMA announced that it had
no objections to the transaction. As a result, we were able to start
our planned restructuring work. HRP is included in the Group's
accounts as from June.

Risk assessment

The operation of the Beijer Ref Group is 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 operation
is dependent on the general economic trend, especially in Europe,
which controls the demand for Beijer Ref'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 operation, Beijer Ref 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 the Group's Annual Report.

Malmö, 19 October 2016

Beijer Ref AB (publ)

Per Bertland, CEO

For further information, please contact:

Per Bertland, CEO - switchboard +40 35 89 00

Jonas Lindqvist, CFO - switchboard +40 35 89 00

This information is information that Beijer Ref AB is obliged to make
public pursuant to the EU Market Abuse Regulation and the Securities
Markets Act. The information was submitted for publication, through
the agency of the contact person set out above, at 08.30 CET on 19
October 2016.

Beijer Ref in short

The Beijer Ref Group is focused on trading and distribution operations
within refrigeration products, air conditioning and heat pumps. The
product programme consists mainly of agency products from leading
international manufacturers and, in addition, some manufacture of own
products, combined with service and support for the products. The
Group creates added value by contributing: technical competence to
the products; accounting for knowledge and experience about the
market; and by providing efficient logistics and warehousing.

Operations are carried out by region within the Beijer Ref, which
comprises Beijer Ref ARW (Air conditioning, refrigeration, wholesale)
and Toshiba's distribution operation within air conditioning and
heating. The Beijer Ref Group is a leading operator within the
refrigeration sector in Europe and has a significant position within
air conditioning in Europe. The operation is split into six
geographic segments: Nordic countries, Southern Europe, Central
Europe, Eastern Europe, Africa and Asia Pacific. Growth is achieved
both organically and through the acquisition of companies which
supplement existing operations.

Seasonal effects

Beijer Ref's sales are seasonally dependent as demand for
refrigeration and air conditioning is at its peak during the warm
months of the year. It means that demand in the northern hemisphere
is at its peak during the second and third quarters whilst demand in
the southern hemisphere is at its peak during the first and fourth

Financial calendar

The Year-End Report for 2016 will be published on 16 February 2017.

The Annual Report for 2016 will be published in March 2017.

The Interim Report for the first quarter 2017 will be published on 24
April 2017.

The Interim Report for the second quarter 2017 will be published on 14
July 2017.

The Interim Report for the third quarter 2017 will be published on 20
October 2017.

This document is a translation of the Swedish language version.

In the event of any discrepancies between this translation and the
original Swedish document, the latter shall be deemed correct.


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