Financial statements 2021: Record order intake and sales

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Fourth trimester

  • Order intake increased by 50% to MSEK 597 (397).
  • Net sales increased by 33% to MSEK 466 (350).
  • EBIT up to 21.9 MSEK (-5.2).
  • Profit after tax of 10.8 MSEK (-11.7).
  • Earnings per share were SEK0.37 (-0.41).
  • Beijer Group shares have risen on the Nasdaq from Stockholm Mid Cap List at the end of the year.
  • the Beijing Electronic and Korenix business entities report as a single entity from January 1, 2022.

Full year

  • Order intake increased by 40% to MSEK 2,031 (1,449).
  • Net sales increased by 13% to MSEK 1,619 (1,438).
  • EBIT up to 68.3 MSEK (15.8).
  • Profit after tax increased to MSEK 36.0 (-6.1).
  • Earnings per share were SEK1.24 (-0.20).
  • Acquisition of ELTEC from Germany.
  • The Board of Directors is proposing a dividend of SEK0.50 (0) per share for fiscal year 2021.
  • President of Westermo Jenny Sjodahl appointed new Chairman and CEO of BEIJER GROUP effective March 1, 2022.

COMMENTS FROM CEO PER SAMUELSSON

“BEIJER GROUP consolidated its positive trend of strong growth in order intake and sales in the fourth quarter. Throughout the pandemic, our ambition has been to come out of this crisis stronger. We have made management of the global shortage of components and safeguarding our delivery capacity a conscious strategy,
which has improved sales and order intake, and has been well received by our customers. This also translated into higher purchasing costs for components, which impacted earnings in the quarter. Price increases for customers will gradually offset increased component costs over the coming quarters.

We have taken a new step with the placing of orders 2 billion SEK for the whole of 2021. In the fourth quarter, order intake increased by 50% to almost 600 MSEK. The increase is broad, covering the Group’s three business units and all geographies.

We strengthened our positioning with current professional customers, who generally showed good demand. We also secured several new business accounts, demonstrating growing interest in our solutions and products. At the same time, we are seeing signs of changing customer behavior, with customers
place orders with longer advance planning.

BEIJER GROUP’s improved delivery capacity during the quarter was reflected in its higher growth rate. Sales increased by more than 30% during this period. The increase in component costs amounted to nearly MSEK 20, which impacted earnings in the fourth quarter. We were also affected by negative currency effects of 7 MSEK due to factors such as the strong depreciation of the Turkish lira. The level of earnings for the quarter is too low, but under normal circumstances we would have been able to deliver performance in line with our EBIT margin target.

Over the past year, we have advanced our product positioning. Westermo acquired the German company ELTEC, which added wireless communication solutions for passenger information on trains to the business unit’s offer. Our subsidiary Virtual Access launched the first product of its planned product line called Merlin in the energy segment. Westermo also launched new robust network solutions for the power distribution segment and a complete upgrade of its WeOS operating system with enhanced functionality.

Beijing Electronic introduces 16 new products, including software upgrades for its iX software, which has been updated with new features. Korenix has made further advances in the product plan based on its new platform – the Korenix Switch OS platform – consisting of software and hardware.

The partnership between Beijing Electronic and Korenix continued to plan. Their coordination of marketing, sales, supply chains and inventory management is complete. The product development and offerings of these entities are increasingly integrated. Overall, in this context, I would like to present a breakthrough order of approximately 24 MSEK from one of the world’s largest semiconductor producers that Korenix secured during the quarter. This order is one of the concrete results of the partnership that the business entities started in 2020, and includes a combination of Korenix and Beijer Electronics’ offerings. The order was won in the face of tough international competition and we are optimistic about new future opportunities for the combined offering from the commercial entities. The business entities will take further steps in their partnership in 2022, including reporting jointly as a single entity called Beijing Electronic.

The strategy we implemented a few years ago is now bearing fruit, particularly in terms of growth, and we believe that we still have strong potential for profitability. Our objective is that our entities have the ability to achieve a minimum annual organic growth of 10%, and the potential to achieve a
15% EBIT margin. We continue to screen potential acquisitions. It is gratifying that our stock is now listed on Nasdaq Stockholm’s Mid Cap list. We can also report that assuming the Annual General Meeting approves the proposal of the Board of Directors, BEIJER GROUP will start paying dividends again.

This is my final financial report, as due to my age I will be leaving my position at the end of February this year. President of Westermo Jenny Sjodahl was appointed Chairman and Chief Executive Officer of BEIJER GROUP effective March 1. I am delighted to pass the baton to him, to continue to develop our activity and our organization,
with our highly qualified and professional colleagues.

Uncertainty regarding component shortages remains high and it is difficult to predict when things might normalize. We monitor the China/Taiwan and Russia/Ukraine political situations closely. Nevertheless, the beijer group started the new year in good market conditions, with a record order book and a stronger customer offer. This is why we believe that the Group has good potential to continue to improve its financial results for 2022 compared to the previous year.”

CONFERENCE CALL INVITATION

Today a conference call will be held for press and analysts, where Chairman and Chief Executive Per Samuelsson and Executive Vice President and Chief Financial Officer Joakim Laureén present the company and comment on the report.

Time: Thursday January 27, 2:00 p.m. CET

To participate in the conference, dial:

From SE: +46850558354
From UK: +443333009032

To access the presentation, please use this link:
https://www.anywhereconference.com?Conference=425017759&PIN=19653743&UserAudioMode=DATA

The report and presentation will be available on the company’s website www.beijergroup.com. A recording of the conference call will also be available here after the event.

Welcome to join us!

This disclosure contains information that Beijer Electronic Group is required to make public in accordance with the EU Market Abuse Regulation (EU No. 596/2014). The information has been submitted for publication, through the contact person, the 27-01-2022 13:00 CET.

For more information please contact:

Chairman and CEO, Per Samuelsson, tel. 46 (0)40 35 86 10, mobile 46 (0)708 58 54 40
Executive Vice President and Chief Financial Officer Joakim Laurentel 46 (0)40 35 84 96, mobile 46 (0)703 35 84 96.

Beijer Electronic Group AB (ed.) is a growing powerhouse of innovators in critical industrial digital technology and the IIoT. With a strong focus on the connection between people, technology and data, we share the pride of having some of the world’s largest companies among our key customers. Since its establishment in 1981, BEIJER GROUP has grown into a multinational group of complementary business entities with sales of more than 1.6 billion Swedish crowns in 2021.

The company is listed on the Nasdaq Stockholm Main Market under the symbol BELE. www.beijergroup.com

https://news.cision.com/beijer-electronics-group/r/financial-statement-2021-record-order-intake-and-sales,c3493512

https://mb.cision.com/Main/668/3493512/1526019.pdf

(c) Decision 2022. All rights reserved., sources Press Releases – English

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