Bufab has released its Q1 Interim report for 2021, showing strong growth and improvement in profitability.
The report shows that during the first quarter of the new year, net sales increased by eight per cent to SEK 1,423 million (1,316). Organic growth was up fourteen per cent and order intake higher than net sales.
The groups operating profit operating profit (EBITA) increased by 40 percent to SEK 177 million (126) and the operating margin was 12.4 percent (9.5). Additionally, operating cash flow increased to SEK 105 million (84) and earnings per share increased by 38 percent to SEK 3.18 (2.31)
The report also shows that Bufab achieved its highest ever single quarter sales, operating profit and earnings per share.
Jörgen Rosengren, President and CEO, said: “The first quarter of 2021 was operationally very challenging for Bufab. Despite this, we achieved our best-ever sales and operating profit and increased our profitability significantly.”
“We have seen healthy demand at the beginning of the year, we have increased our market shares, and order intake shows no indication of a downward turn. Combined with very low inventory levels throughout the manufacturing industry in Europe and North America, this provides excellent conditions for a continued favourable development moving forward. Our financial status is also strong due to excellent cash flow and profit recently.”
Alongside the report, the group announced that Bufab has joined the Science Based Targets initiative and that its Board of Directors have decided on new financial targets until 2025.
“During the quarter, we launched a new strategy for Sustainable Leadership 2025. It entails intensified work with growth and profitability improvement, as well as investment in development and further acquisitions. We have also communicated new financial targets. Until 2025, we aim to increase our sales by 10 percent and profit by 15 percent per year, and achieve a sustainable operating margin of 12 percent latest by 2023. Also, Bufab has joined the UN’s Science-Based Targets initiative, which marks a significantly increased ambition level in the area of sustainability”, said Rosengren.
“Once again, I want to thank Bufab’s 1,300 “Solutionists” throughout the world for their outstanding work,” he added.
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