Bergman & Beving (BERG) Q1 24/25 earnings summary

Executive summary

• Revenue increased 2% year-over-year to MSEK 1,253, with improved profitability and cash flow despite challenging market conditions and a 7% organic decline.

• EBITA rose 13% to MSEK 119, marking the 18th consecutive quarter of growth; EBITA margin improved to 9.5% from 8.6%.

• Gross margin improved to 47.4% (up from 46%).

• Two acquisitions completed: Maskinab (Sweden) and Spraylat (UK), both high-margin, profitable companies.

• Divisions renamed to Core Solutions, Industrial Equipment, and Safety Technology to reflect a broader acquisition strategy.

Financial highlights

• Revenue: MSEK 1,253 (up 2% YoY); organic growth declined 7%.

• EBITA: MSEK 119 (up 13% YoY); EBITA margin: 9.5% (up from 8.6%).

• Net profit: MSEK 58 (up 21% YoY); EBT: MSEK 74 (up 19% YoY).

• Cash flow from operating activities: MSEK 194 (up from 179 YoY).

• Operational net debt reduced to MSEK 962 from MSEK 1,065; Net Debt/EBITDA ratio improved.

Outlook and guidance

• Management remains confident in achieving EBIT of SEK 500 million and EBITDA margin of at least 10% by fiscal year 2025-26.

• Acquisition ambition remains strong, targeting highly profitable B2B companies in niche markets; over SEK 1 billion available for further acquisitions.

• Focus on profit expansion, cost control, and gross margin protection; inventory reduction to continue at a slower pace.

• Market conditions are stable at a lower level, with hopes for improvement in the autumn, though no clear pickup seen yet.