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Bufab Group: Interim report January-September 2016

Continued healthy growth and improved operating margin in both segments.

Bufab opens subsidiary in Singapore.

Third quarter of 2016

* Net sales rose by 16 percent to SEK 668 million (577). Organic growth was 4
* Order intake was slightly lower than net sales.
* Operating profit rose to SEK 66 million (52) and the operating margin rose
to 9.8 percent (9.0)
* Earnings per share rose to SEK 1.22 (0.87)

January-September 2016

* Net sales rose by 16 percent to SEK 2,148 million (1,847). Organic growth
was 4 percent
* Order intake was slightly lower than net sales.
* Operating profit rose to SEK 219 million (159) and the operating margin to
10.2 percent (8.6).
* Earnings per share rose to SEK 4.06 (2.78).

The Group in brief

| Quarter 3 D Jan-Sep D Rolling Full |
| |
| 12 months year |
| SEK million 2016 2015 % 2016 2015 % 2015/16 2015 |
| Order intake 665 582 14 2,143 1,846 16 2,760 2,463 |
| Net sales 668 577 16 2,148 1,847 16 2,760 2,458 |
| Gross profit 194 159 22 623 510 22 790 677 |
| Gross margin, % 29.0 27.5 29.0 27.6 28.6 27.5 |
| Operating expenses -128 -107 20 -404 -351 15 -533 -480 |
| Operating profit 66 52 26 219 159 38 257 197 |
| Operating margin, % 9.8 9.0 10.2 8.6 9.3 8.0 |
| Profit after tax 46 33 41 155 106 46 173 125 |
| Earnings per share, SEK 1.22 0.87 41 4.06 2.78 46 4.55 3.27 |

During the third quarter, net sales rose by 16 percent. The acquisitions we
have completed over the past two years have had a good development and work
well with the other subsidiaries. During the quarter, Bufab also achieved
substantial organic growth in both operating segments thanks to an increased
market share and slightly stronger underlying demand.

Gross margin for the quarter was significantly stronger year-on-year,
primarily due to cost savings in sourcing. The stronger gross margin combined
with a good contribution from acquired companies also led to an improved
operating margin, despite operating expenses being somewhat high during the

In segment Sweden, net sales rose by 6 percent, driven primarily by organic
growth. The market share is estimated to have increased slightly, which we
see as a sign that our long-term and intensive focus on sales in our home
market is beginning to pay off. The increase is particularly gratifying
against the background of greater uncertainty among telecommunications
customers. The gross margin and operating margin both increased.

Segment International performed well. Net sales rose by 21 percent, as a
result of acquisitions and an increased market share. Organic growth was 4
percent, which was lower than earlier in the year due to weaker market
growth. Despite this slackening, we continue to see growth in most major
markets, with the exception of China and Norway. We have yet to see any
negative effects on sales volumes connected to an impending Brexit. A
strengthened gross margin during the quarter was offset in part by higher
operating expenses, primarily for obsolescence and negative currency effects.
We are continuing to strengthen the sales organisation in the segment. For
example, Bufab established a subsidiary in Singapore during the quarter, in
line with the aim of increasing our presence in Asia. In total, segment
International increased its operating profit by 30 percent.

So far this year, Bufab has performed well with both organic and acquired
growth, higher margins, improved earnings and a healthy cash flow. Growing
uncertainty in the business environment, a slightly weaker order intake, the
prevailing exchange rates and a risk of rising commodities prices are
challenges that we face towards the end of 2016 and in 2017. Nevertheless, we
intend to achieve continued favourable performance by means of increased
market share and improved sourcing and logistics efficiency. We also see
opportunities to make additional value-creating acquisitions.

Jörgen Rosengren
President and CEO


A conference call will be held on 26 October 2016 at 10:00 a.m. CET. Jörgen
Rosengren, President and CEO, and Thomas Ekström, CFO, will present the
results. The conference call will be held in English.

To participate in the conference, use any of the following dial-in numbers:
+44 (0) 1452 555566, UK: 08444933800, Sweden: 0850336434, or the US:
16315107498. Conference code:81029778.

Please dial in 5-10 minutes ahead in order to complete the short registration


Jörgen Rosengren
+46 370 69 69 01

Thomas Ekström

CFO och IR-direktör
+46 370 69 94 01


Bufab AB (publ), Corporate Registration Number 556685-6240, is a trading
company that offers its customers a full-service solution as Supply Chain
Partner for sourcing, quality control and logistics for C-Parts (screws,
nuts, etc.). Bufab's Global Parts ProductivityTM customer offering aims to
improve productivity in the customers' value chain for C-Parts.

Bufab was founded in 1977 in Småland and is an international company with
operations in 24 countries. The head office is located in Värnamo, Sweden,
and Bufab has about 940 employees. Bufab's net sales for the past 12 months
amounted to SEK 2.8 billion and the operating margin was 9 percent. The Bufab
share is listed on Nasdaq Stockholm, under the ticker "BUFAB". Please
visitwww.bufab.comfor more information.

This information is such that Bufab AB (publ) is obliged to disclose in
accordance with the EU's Market Abuse Regulation. The information was
submitted for publication by the aforementioned contacts on 26 October 2016
at 8.00 a.m. CET

Q3 2016_engelsk_161025 clean


This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bufab Group via Globenewswire

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