Beijer Ref (BEIJ) Q2 2024 earnings summary

Executive summary

• Achieved 12% sales growth in Q2 2024 to SEK 9,681 million, with 2.2% organic growth and a return to positive organic growth after three negative quarters, driven by acquisitions and improved market conditions.

• EBITA rose 13% to SEK 1,148 million, with a record margin of 11.9% for the quarter and strong performance in the US and APAC.

• Operating cash flow turned positive at SEK 354 million, reversing a negative flow from the prior year, with inventory normalization on track for year-end.

• Strategic acquisitions, including Young Supply in North America and the pending Cool4U deal in Hungary, expanded the product and geographic footprint.

• All product segments and regions contributed to growth, with notable strength in OEM and North America.

Financial highlights

• Net sales: SEK 9,681 million in Q2 2024, up 12% year-over-year, with 2% organic growth and 13% EBITDA/EBITA growth.

• EBITA: SEK 1,148 million, margin 11.9% (up from 11.7%).

• Net profit: SEK 728 million, up 2% from last year.

• EPS after dilution: SEK 1.42, up 2% for the quarter.

• Operating cash flow: SEK 354 million in Q2, SEK 550 million better than last year.

Outlook and guidance

• Expectation of continued stable margins for the remainder of 2024, despite ongoing investments and acquisitions.

• Regulatory trends (sustainability, electrification, refrigerant transition) and EU/US regulatory changes support long-term growth.

• US platform expansion, private label, and new branches to drive future growth.

• Strong acquisition pipeline globally, with focus on bolt-on and mid-size deals and sustainable refrigerants.

• Transition to A2L products in the US expected to impact sales and pricing mainly from 2025.