Byggma (BMA) Q4 2023 earnings summary

Executive summary

• FY sales fell 11.4% to NOK 2,222.9m; adjusted operating profit was NOK 203.1m, down from NOK 268.0m as housing activity weakened.

• Q4 sales rose 2.1% to NOK 571.3m; adjusted operating profit was NOK 31.8m versus NOK 37.8m.

• Q4 pretax profit of NOK 108.6m included NOK 113.8m in Norske Skog associate profit.

• Stable factory operations, cost discipline, and growth in lighting and newer products supported continued profitability.

Financial highlights

• FY EBITDA was NOK 293.3m versus NOK 350.1m in 2022; adjusted operating profit was NOK 203.1m versus NOK 268.0m.

• FY profit before tax was NOK 31.3m versus NOK 529.4m; net income was NOK 61.0m versus NOK 429.8m, and EPS was NOK 0.87 versus NOK 6.16.

• Q4 revenue was NOK 571.3m versus NOK 559.5m; EBITDA was NOK 55.8m versus NOK 58.1m.

• Q4 profit before tax was NOK 108.6m versus a loss of NOK 171.5m; net income was NOK 108.9m and EPS NOK 1.56.

Outlook and guidance

• 2024 revenue is expected to be NOK 2,200m; the organic growth vision targets NOK 3,000m in sales, supported by volume, efficiency, product mix and innovation.

• Available capacity is ~25% at Forestia, ~40% at Huntonit and Smartpanel, and ~60% at Masonite Beams.

• Growth plans include higher-value products, capacity increases, exports and M&A; 11 potential targets were shortlisted, with combined 2019 revenue of NOK 17.6bn.

• Investment priorities include digitalization, automation, environment and sustainability; costs and operations may be rationalized if activity remains low.

• Norway’s annual housing requirement is 29,000 units; the accumulated supply gap could support demand if construction recovers.