Bufab has released its results for the third quarter of 2023 where net sales declined by -2% to SEK 2,071 million (2,122). Organic growth was -7% and order intake was somewhat lower than net sales.
Adjusted operating profit (EBITA) was SEK 260 million (274), corresponding to an operating margin of 12.6% (12.9). Operating profit (EBITA) was SEK 220 million (272) and the operating margin was 10.6% (12.8).
For the period from January to September, net sales increased by 6% to SEK 6,737 million (6,358). Organic growth was -5% and order intake was somewhat lower than net sales.
Adjusted operating profit (EBITA) was SEK 892 million (845), corresponding to an operating margin of 13.2% (13.3). Operating profit (EBITA) increased by 15% to SEK 862 million (748) and the operating margin was 12.8% (11.8).
President and CEO of Bufab, Erik Lundén, commented, “Bufab had a continued solid performance during the third quarter, reporting strong cash flow and stable underlying results. Sales growth amounted to -2%. Organic growth amounted to -7% and was negatively impacted by strong comparative figures and a lower demand in some industrial segments.
“In particular, Segment East and UK/North America noted a decline, especially sectors that experienced a tailwind during the pandemic, such as furniture, kitchen, outdoor recreation and health. Sectors that reported a strong demand during the quarter were energy, automotive and defence. Segment West had a good development during the quarter, supported by high demand and increased market shares. Order intake for the Group was slightly lower than net sales.
“Our focused work to strengthen cash flow is continuing to yield results. Operating cash flow improved significantly year on year due to a strong improvement in working capital. We anticipate a continued strong cash flow during the year. Our objective is to gradually reduce the key ratio Net debt/EBITDA, which improved during the quarter and amounted to 2.7 (3.4).
“We are seeing good results from the integration of the most recent acquisitions and at the same time, we are moving forward with several potential acquisition candidates.
“We are also continuing to integrate sustainability throughout our operations – an increasingly important area for us and our customers. In 2023, we prepared for compliance with the EU’s new legal requirements regarding the Corporate Sustainability Reporting Directive (CSRD) and we have a strong customer offering as regards to sustainability that encompasses both legal and voluntary requirements that are well suited to the needs of both large and small customers.
“I look forward to welcoming investors, analysts, and the media to our Capital Markets Day on 6 December in Stockholm, where we will present Bufab’s updated strategy, growth opportunities and execution going forward.”