Improved margin and strengthened cash flow conclude the year
Fourth quarter of 2023
- Net sales declined by -6 percent to
SEK 1,943 million (2,074). Organic growth was -9 percent and order intake was somewhat higher than net sales - Adjusted operating profit (EBITA) was
SEK 229 million (239), corresponding to an operating margin of 11.8 percent (11.5) - Operating profit (EBITA) was
SEK 181 million (242) and the operating margin was 9.3 percent (11.7) - Earnings per share decreased by 48 percent to
SEK 1.87 (3.58) - Operating cash flow amounted to
SEK 359 million (138), corresponding to a cash conversion ratio of 188 percent (54) - The key figure net debt/EBITDA, adjusted improved to 2.6 (3.2)
Full-year 2023
- Net sales increased by 3 percent to
SEK 8,680 million (8,431). Organic growth was -6 percent and order intake was somewhat lower than net sales - Adjusted operating profit (EBITA) was
SEK 1,121 million (1,084), corresponding to an operating margin of 12.9 percent (12.9) - Operating profit (EBITA) increased by 5 percent to
SEK 1,043 million (990) and the operating margin was 12.0 percent (11.7). - Earnings per share decreased by 7 percent to
SEK 15.17 (16.23). - Operating cash flow amounted to
SEK 1,602 million (99), corresponding to a cash conversion ratio of 146 percent (10) - The Board of Directors proposes a dividend of
SEK 5.00 (4.75) per share
CEO’s overview
A record year for
For the full-year of 2023,
Strong performance despite lower demand in the quarter
In the fourth quarter, we reported a strong result despite lower demand year on year. Sales growth amounted to -6 percent in the quarter and organic growth to -9 percent. A downturn in demand was primarily noted by Segment East and
Efforts to strengthen our gross margin continued to bear fruit in the quarter due to a better customer and product mix.
Adjusted for the remeasurement of additional purchase considerations in the quarter of -48 (+3), the operating margin (EBITA adjusted) was 11.8 percent (11.5), which we are satisfied with given the lower demand in the quarter.
While Segment North in particular contributed to operating profit in the quarter,
Cash flow significantly improved year on year due to a strong improvement in working capital, and for the full-year 2023, we delivered our strongest cash flow on record. Our objective is to gradually reduce the net debt/EBITDA ratio, which improved during the quarter to 2.6 (3.2). Our strengthened financial position provides scope for acquisitions moving forward, and recently we have noted an increase in M&A activity.
New strategy and raised profitability target
During the Capital Markets Day in December, we presented Bufab’s updated strategy, which focuses on profitable growth by creating even more value for current and new customers.
In line with our new, more ambitious plans for
An area we will continue to focus on as part of our new strategy is leading the development of sustainability in our industry. In 2024, we will continue to develop our customer offerings in the field of sustainability and continue to integrate sustainability throughout our operations, with the goal of reaching net zero by 2050.
Well positioned for 2024
In recent times, the market outlook has become more uncertain, and we live in a time of great geopolitical uncertainty. The recent unrest in the
We have a well-diversified customer base and article portfolio, with a good spread of risk among various sectors and markets, and a strategy that is well-adapted for the future.
In 2024, we will continue to execute our strategy where our short-term priorities stand firm: to capture market share, gradually improve our margin and deliver a stronger cash flow.
Finally, I want to thank all our customers around the world for the trust they have shown in us during the year and extend a big thank you to our 1,800 “solutionists” worldwide for their outstanding work in 2023.
Erik Lundén
President and CEO
Conference call
A conference call will be held on
Box 2266
SE-331 02, Värnamo,
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com
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