Stronger profitability and higher order bookings
Beijer Alma continued to perform well during the third quarter, with growing net revenue and stronger profitability. Market conditions varied between companies and regions, but were generally favorable. This was confirmed both by our order bookings and by the activity level at the companies during the quarter.
Stable growth and continued earnings improvement
Net revenue increased 11 percent in the third quarter to MSEK 2,089, with organic growth of 1 percent. Order bookings increased 22 percent to MSEK 2,155 for the quarter, of which 12 percent was organic. Beijer Components net revenue grew by 2 percent, although demand varied between markets. Beijer Tech continued to grow, with net revenue growth of 28 percent, mainly driven by acquisitions and a generally healthy activity level across Beijer Tech’s companies. With order bookings driving revenue for the coming quarters, both subsidiaries noted an upturn, although Beijer Tech was the stronger of the two.
Further positive signs were evident in the form of improved profitability, with adjusted EBITA up 18 percent to MSEK 352. The fact that we have now delivered year-on-year earnings improvements for eight consecutive quarters is a testament to the Group’s cost control and resilience.
More efficient use of capital
These results also reflect the Group’s ability to generate earnings growth through a combination of organic growth, acquisitions and a consistent focus on profitability. Our capital efficiency improved further in the quarter, reaching 49.8 percent, which is a new record level just below our financial target. Our focus is on making continued improvements by actively addressing our tied-up capital and profitability.
We are continuing to pursue acquisitions with an undiminished focus, and we see good prospects for further expansion through acquisitions in both Beijer Components and Beijer Tech. Our financial position provides us with the flexibility to act when the right opportunities arise.
Measures to create a stronger foundation
During the quarter, a decision was made to close two facilities in Beijer Components’ European spring operations. The measures – which will affect one of Alcomex’ factories and a distribution unit for standard springs – are part of the Group’s efforts to improve its profitability and cost control. The affected operations will mainly be relocated to other units in Europe. We have carried out extensive work at Alcomex over the past two years, and we are now in a better and more stable position.
After the first three quarters of the year, the market outlook remains stable and our operations are well equipped for the future. We are prioritizing profitable organic growth, a disciplined acquisition strategy and measures to make the companies more competitive.