Group net sales rose by 18% to SEK 3,786 million (2017: 3,201), of which 8% was organic. Operating profit (EBITA) rose to SEK 367 million (311) corresponding to an operating margin of 9.7% (9.7).
The Group acquired Rudhäll Industri during the year, with sales of about SEK 210 million and operations in Sweden and China.
President and CEO, Jörgen Rosengren, comments: “We achieved particularly strong performance in our largest operating segment, International. Increased market share and successful acquisitions drove growth of over 20%. The gross margin improved, due to favourable exchange rates and significant price increases. Despite continued investment, for instance in the sales and sourcing organizations, revenue grew significantly faster than costs. As a result, operating profit grew by more than 40 percent. Despite strong growth for many years, both our market share and share of wallet with most existing customers are still very low. We see many attractive business opportunities ahead.”
“On the other hand, Segment Sweden experienced a poorer trend in 2018. Growth was satisfactory, but the gross margin weakened substantially. The segment was under pressure from high purchasing prices and a Swedish krona rate at historically low levels. We countered these challenges with significant price increases but did not completely offset the adverse factors. We are therefore intensifying our work on purchasing savings aimed at restoring the segment’s gross margin over time.”
“Such variations are part of Bufab’s business. However, the overall picture is a positive one. We showed good growth for the sixth year in a row. We kept the gross margin stable despite significant increases in raw material prices in 2017 and 2018. We used the growth to finance continued investment in our Leadership strategy but kept the operating margin stable. As a result, our net profit grew by 20% to an all-time-high level of SEK 255 million.”
The full report is available here
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.
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