Fagerhult (FAG) Q4 2011 earnings summary

Executive summary

• FY 2011 was a record year for sales and profit; reported net sales rose 20% to MSEK 3,022.8 and operating profit increased 107% to MSEK 317.2.

• Q4 organic sales growth was 10%; operating margin reached 10.8%, versus 7.9% YoY.

• Positive results reflected acquisitions, organic growth, improved margins and lower operating costs; a stronger Swedish krona reduced profit by MSEK 20 YoY.

Financial highlights

• FY net sales MSEK 3,022.8 (2,505.6); adjusted for acquisitions and currency, growth was 6.3%.

• FY operating profit MSEK 317.2 (152.9); profit after tax MSEK 207.2 (94.5); EPS SEK 16.43 (7.49).

• Q4 net sales MSEK 801.7 (708.3), operating profit MSEK 86.4 (56.2), and profit after tax MSEK 66.4 (25.4).

• FY sales outside Sweden were MSEK 2,293.8, or 76% of sales, versus 72% in 2010.

Outlook and guidance

• 2012 plans emphasize product development, marketing and further internationalization.

• Short-term prospects for Indoor and Outdoor were positive given their late-cycle exposure; Retail may feel a downturn sooner because it is earlier in the business cycle.

• Continued financial uncertainty made market conditions difficult to assess definitively; orders remained strong with no signs of weakening at year-end.