Beijer Almas' Year-end report 2023

• Net revenue increased to MSEK 1,694 (1,461)
• Adjusted operating profit (EBIT) increased to MSEK 177 (170), corresponding to an operating margin of 10.4 percent (11.6)
• Profit after net financial items increased to MSEK 177 (122)
• Order bookings increased to MSEK 1,710 (1,428)
• Cash flow from operating activities amounted to MSEK 238 (122)
• Items affecting comparability amounted to MSEK 64 and primarily pertained to the reversal of an additional purchase consideration and divestments of subsidiaries
• Earnings per share for the full-year amounted to SEK 8.61 (15.92)
• The Board proposes a dividend of SEK 3.85 (3.75) per share

Group
Growth in the quarter was mainly organic, despite varied demand across the Group’s diversified customer base. Volumes in the broad industrial segments were stable, and several other customer segments, such as the automotive aftermarket, medical technology and other niches, posted good growth. Margin pressure has been addressed through measures in the relevant businesses, which impacted profit for the quarter. Cash flow remained strong as a result of good earnings and our focus on gradually reducing inventory levels. While the final month of the quarter was noticeably weaker, we saw a return to more normal demand at the start of the new year.

Subsidiaries
Although Lesjöfors noted mixed demand, with significant variations between customer segments, both net revenue and order bookings grew organically. The Chassis Springs business area, which has its low season in the fourth quarter, displayed good growth in most European countries. Within Industrial springs, demand decreased somewhat in the Nordics, the US and Asia. The situation varied between customer segments. For example, demand in medical technology was good, while demand was weaker for door springs used by end customers in the construction industry. While the UK grew profitably, several businesses in Central Europe continued to experience margin pressure. A number of measures were taken, such as savings and local restructuring, to ensure profitability and growth over the long term.

Demand was stable in both of Beijer Tech’s business areas. Order bookings increased organically, primarily due to new projects, while volumes in industrial trading declined slightly. Several of our niche companies noted good demand, driven by trends aside from the activity level in the manufacturing industry – not least the year’s acquisitions, Botek and Finn Lamex, which contributed to profitable growth and had an excellent start in our Group.

Strategy and acquisitions
The operating environment remains dominated by uncertainty regarding demand, inflation and interest rates. As such, we are continuously performing a balancing act between growth initiatives and savings. During the quarter, a German Lesjöfors company where we did not see long-term potential for profitable growth was divested. Our diversified global customer base makes the Group robust. When it comes to acquisitions, we are continuing to evaluate good companies that could strengthen the Group by contributing future profitable growth.