C-parts supplier Bufab has published its financial results for the fourth quarter and full year of 2024, with adjusted operating profit and net sales declined in both the quarter and year.
In 2024, the company’s adjusted operating profit was SEK 959 million, dropping from SEK 1,121 million in the previous year. Net sales declined by -7.4% to SEK 8,035 million from 8,680 million. Bufab acquired Italian C-parts distributor VITAL S.p.A. last year. The latter contributed annual sales of approximately EUR 48 million.
Moreover, Bufab divested the manufacturing companies Bufab Lann and Hallborn Metall, which made Bufab in a “good position” to deliver its profitability target, according to Erik Lundén, President and CEO of Bufab.
Although organic growth was -5.4% last year, Bufab’s had a record gross margin, reaching 29.7%.
“During the year…we strengthened the added value we deliver to customers by an expanded service and product portfolio. One example is the implementation of a record number of new logistics solutions during the year that strengthen our customer relationships and provide us with an increased growth rate,” said Lundén.
In Q4, net sales declined by 4.1% to SEK 1,863 million year-on-year from SEK 1,943 million in Q4 2023. Adjusted operating profit also dropped from SEK 229 million in Q4 2023 to SEK 201 million in the same quarter last year, corresponding to an operating margin of 10.8%, dropping from 11.8% year-on-year.
Also, organic growth in Q4 2024 dropped by 1.5%, although it showed an improvement compared to the previous quarter, as organic growth in Q3 2024 was -2.6%.
Regionally, in the UK and Ireland market, net sales in Q4 2024 were SEK 364 million, slightly down from SEK 366 million in the same quarter in 2023.
In the Europe West region, net sales in Q4 2024 were SEK 460 million, increasing from SEK 429 million. The energy industry in the area continued to develop well, especially in Bufab France and the Czech Republic, with lower activity levels in automotive and construction.
Moreover in the Europe North & East region, net sales experienced a year-on-year declined of 12.4% in Q4 2024 to SEK 701 million due to continued weak demand in the kitchens and bathrooms segment.
Looking ahead, the management of the company admitted that uncertainty will remain, although there are indications of improved demand from the general industry.
“Our efforts to strengthen the gross margin and our focus on cost control, will put us in a strong position once the market rebounds. That said, we take a bright view of the future and the direction our company is taking,” said Lundén.
