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Bufab Group reported net sales for 2016 Quarter 3at SEK 668 million – up 16% on the same quarter 2015 (SEK 577 million).
Nine month sales were SEK 2.15 billion, similarly 16% higher than the same period in 2015 (SEK 1.85 billion). Organic sales rose 4%. Year to date operating profit rose to SEK 219 million (2015: SEK 159 million) with an operating margin of 10.2% (2015: 8.6%). Third quarter operating margin fell slightly to 9.8%. Gross margin for the rolling twelve months to end September was 28.6% compared with 27.5% for 2015 full year.
January to September profit after tax was SEK 155 million, 46% up on the same period in 2015 (SEK 106 million).
Commenting on the results, President & CEO Jörgen Rosengren noted: “Organic growth came from increased market share and slightly stronger underlying demand. The stronger gross margin was primarily due to cost savings in sourcing. Acquisitions contributed to the improved operating margin despite Quarter 3 operating expenses being ‘somewhat high’.”
Swedish net sales rose 6% in the quarter driven mainly by organic growth. Gross margin and operating margin both increased. International sales rose 21% in the quarter as a result of acquisitions and market share growth. At 4%, organic growth was lower than earlier in the year due to weaker, although continuing, market growth.
Concluding, Jörgen Rosengren said: “So far this year, Bufab has performed well with both organic and acquired growth, higher margins, improved earnings and a healthy cash flow. Growing uncertainty in the business environment; a slightly weaker order intake; the prevailing exchange rates; and a risk of rising commodities prices; are challenges that we face towards the end of 2016 andin 2017.”
“Nevertheless, we intend to achieve continued favourable performance by means of increased market share and improved sourcing and logistics efficiency. We also see opportunities to make additional value-creating acquisitions.”
Currency exchange: 100 SEK approximately �10.3 at interbank rate
-The 18th China(Guangzhou)Int’l Fastener
& Equipment Exhibition
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