Financial Statement 2022: Strong ending to a record year

Fourth quarter

• Order intake grew marginally to 602.8 MSEK (597.2).
• Net sales increased by 26 percent to 588.6 MSEK (466.4).
• EBIT increased to 62.7 MSEK (21.9).
• EBIT margin increased to 10.7 percent (4.7).
• Profit after tax increased to 51.1 MSEK (10.8).
• Earnings per share improved to 1.77 SEK (0.37).
• Westermo signed a follow-up key order with the train manufacturer Stadler.
• Decisions on new financial targets for growth, results, and dividend.
• After the end of the period, Kristine Lindberg was appointed as the new CEO of the Beijer Electronics business entity, starting April 3, 2023.
     

Full year

• Order intake increased by 26 percent to 2,552.0 MSEK (2,030.6).
• Net sales increased by 31 percent to 2,128.4 MSEK (1,618.8).
• EBIT increased to 201.1 MSEK (68.3).
• EBIT margin increased to 9.4 percent (4.2).
• Profit after tax increased to 146.4 MSEK (36.0).
• Earnings per share amounted to 5.07 SEK (1.24).
• The Board proposes a dividend of 0.50 SEK (0.50) per share for 2022.
• Jenny Sjödahl is new President and CEO effective March 1, 2022.
     

COMMENTS FROM CEO JENNY SJÖDAHL

Stable order intake and strong growth for sales and earnings

For Beijer Group, the fourth quarter of 2022 represented a strong end to a record year, with continued stable order intake and strong growth for sales and earnings. Order intake remained at high levels and exceeded 600 MSEK for the fourth quarter in a row. The demand on the American and European markets developed strongly during the period, while China slowed down. This primarily affected the Beijer Electronics business entity’s order intake, which was stable, while the Westermo business entity reached an all-time high with, among other things, a new key order from the train manufacturer Stadler. For the full year, order intake increased to 2,552 MSEK. Both business entities entered 2023 strengthened, with a significantly larger order backlog than at the start of 2022.

Sales growth was good: the Group’s sales increased by 26 percent to 589 MSEK, which means a new record. Both business entities contributed to the increase, with Westermo reaching 300 MSEK in sales despite continued difficulties with component supply. For Beijer Electronics, which is not limited by component shortages, sales amounted to 291 MSEK, which was on par with the order intake for the period. Even taking currency effects into account, growth was 19 percent in the quarter. For the full year of 2022, the Group reached the milestone of two billion with total sales of 2,128 MSEK, which corresponds to a growth of 31 percent. During the year, both business entities passed the billion milestone for the first time.

Beijer Group’s result for the period was 62.7 MSEK, almost a threefold increase compared to the result for the corresponding period last year, but at the same time a slightly lower level than during the third quarter. The operating margin was 10.7 percent. Beijer Electronics’ operating margin is stable at around 14 percent. Westermo’s margin was negatively affected by 12 MSEK in the quarter due to costs for the purchase of components on the spot market to increase deliveries and close the gap between incoming orders and sales. For the full year, the Group achieved an EBIT result of 201.1 MSEK and an operating margin of 9.4 percent, a strong improvement compared to last year. 

I am proud and happy to be able to sum up a strong year. However, we are not satisfied, rather we see potential to perform even better. During the period, the Board decided on new financial targets, which were presented at a wellattended capital market day. The new targets mean that the Group should have an annual organic growth of at least 10 percent, reach an operating margin (EBIT%) of at least 15 percent and be a dividend-paying company. With the results from 2022, we see that the Group is performing at the level of the growth target and has good prospects to reach it in the future as well, given the growing segments in which we operate. More both short-term and long-term efforts are required to achieve the profitability goal. It is a matter of continued focus on more attractive segments combined with improvements in internal efficiency, where supply problems still have a negative impact.

In recent years, Beijer Group has completed several acquisitions that have been successfully integrated into existing operations. Acquisition candidates who contribute with new knowledge, new technology or expansion towards new markets and customers are continuously evaluated in a structured process. The new financing agreement, which entered into force during the period, strengthens the Group’s opportunities to pursue an active and targeted M&A agenda in the future as well.

During the year, Beijer Group spent a total of SEK 223 MSEK in R&D. During the year, both business units have presented several new and updated products that strengthen their positions in the market. R&D investments are actively directed towards segments and areas with great potential where digitalization and sustainability are key drivers. A large part of the work involves software development and developing concepts for service, training, and software upgrades, for example to protect against cyber threats.

Our operations contributes to sustainable development, and we will increase our focus in this area in the coming year.

The macroeconomic situation remains uncertain and geopolitical tensions remain. China’s lifting of Covid 19 restrictions could affect business in the short term in the event of a sharp increase in the spread of infection. We follow the development and are prepared for different scenarios, which, among other things, Beijer Electronics’ decision to establish supplementary production in Malmö is an expression of. The situation regarding the component shortage continues to be challenging for certain specific electronic components and will continue to affect the Group in the shorter perspective. The Group entered 2023 with a record order book. Even though the economic situation is uncertain, we continue to see good demand within the segments and in the markets where we operate, which contributes to cautious optimism about future developments.

I would like to conclude by thanking all employees for their extraordinary efforts during a very special year. Together, we have managed to handle the challenges well!
   

INVITATION TO PRESENTATION OF THE REPORT

Today a conference call will be held for press and analysts, where President and CEO Jenny Sjödahl and EVP and CFO Joakim Laurén present the company and comment on the report.

Time: Wednesday January 25, 13:30 CET

To participate in the conference please dial:

From SE: +46850558369
From UK: +443333009271

To access the presentation please use this link:
https://www.anywhereconference.com?Conference=425024810&PIN=31943977&UserAudioMode=DATA

The report and the presentation will be available at the company’s website www.beijergroup.com. A recording of the conference call will also be available here after the event.

Welcome to join!   

  

This disclosure contains information that Beijer Electronics Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25-01-2023 13:00 CET.