Bufab’s interim report for January to March 2023 has revealed a strong start to the year with continued healthy growth in both sales and operating profit, and a robust improvement in cash flow.
Bufab once again achieved its highest ever sales, operating profit and earnings per share for a single quarter. Net sales increased by 19% to SEK 2,386 million (2,002). Organic growth was 0% and order intake was lower than net sales.
Operating profit (EBITA) increased by 33% to SEK 323 million (243) and the operating margin was 13.5% (12.1). Adjusted for items affecting comparability related to the closure of the Russian operations of SEK 0 million (-15), remeasured additional purchase considerations of SEK -2 million (-15) and acquisition costs of SEK 0 million (-8), operating profit increased by 16% to SEK 325 million (281), corresponding to an adjusted operating margin of 13.6% (14.0).
In a statement, Bufab President and CEO, Erik Lundén said, “We continue to undertake the intensive work of integrating the recent acquisitions, with the sustained priority of realising growth synergies high on the agenda. We also continue with the long-term development of our business by, integrating sustainability throughout the whole organisation, broadening our customer offer, as well as increasing our degree of both digitalisation and productivity. In addition to the this, we also continue to work with efficiency activities to compensate for the realised inflationary pressure and have situationally adapted plans in place for each company within the Group. Given the geopolitical and macroeconomic situation, there is great uncertainty, and we are seeing a continued cautionary approach among our customers in certain industrial segments. However, we have a large and a well-diversified customer- and article portfolio, with good diversification of risk in various industries and markets. At the same time, a weaker economy creates favourable conditions for a strong player such as Bufab to take new market shares as customers increase their focus on reducing indirect costs such as C-parts. These possibilities combined with our broad customer offer and increased customer relevance give us a favourable outlook for a continued long-term, sustainable, and profitable growth journey.”
