Interim report January - June 2024

• Net revenue increased to MSEK 1,885 (1,819)
• Adjusted operating profit (EBIT) increased to MSEK 249 (218), corresponding to an operating margin of 13.2 percent (12.0)
• Profit after net financial items increased to MSEK 190 (168)
• Earnings per share amounted to SEK 2.35 (2.05)
• Order bookings increased to MSEK 1,892 (1,809)
• Cash flow from operating activities totaled MSEK 235 (336)
• The Annual General Meeting approved a dividend of SEK 3.85 (3.75) per share

Group
Despite an overall weak industrial economy, the Group displayed stability and growth in the quarter, both organic and acquisitive. Demand in was stable overall, but varied across the Group’s diversified customer base. The Nordics stood out as the strongest region, followed by the UK and the US, while Central Europe and Asia were weaker.

Subsidiaries
Lesjöfors noted mixed demand across different geographic regions and order bookings grew organically. The Chassis Springs business area has experienced good demand during the year, although sales at the end of the quarter did not reach last year’s high comparative figures. In Industry, the Nordic region and the UK contributed growth. In the US, demand in the industrial segment was favorable, while volumes were lower in the medical segment. Demand was weaker among Lesjöfors customers in Asia and Central Europe.

For Beijer Tech, demand was generally stable, with organic growth in the Fluid Technology and Niche Technologies business areas. Industrial Products experienced generally weaker demand. There was strong demand in the Norwegian market, while Finland was weaker.

Acquisitions
Beijer Tech signed an agreement during the quarter to acquire Clemco Norge AS, a Norwegian supplier and retailer of corrosion protection and surface treatment to customers in the energy sector and general industry, primarily in Norway. The company is a well-managed niche player that strengthens Beijer Tech’s growing operations in Norway.

On July 1, after the end of the quarter, Lesjöfors acquired the UK spring manufacturer Clifford Springs. The company has a strong offering in energizer springs to the seal and valve industry in the UK, Europe and the US, which strengthens our focus on this attractive product area.

The activity level in the M&A market is high, which is creating opportunities to find new, attractive companies that could strengthen the Group by contributing future profitable growth. At the same time, the economy continues to be characterized by uncertainty and interest rates remain high, leading to a constant balancing act between growth initiatives and savings.