Bufab Group has reported solid third quarter results with net sales increasing by 49% to SEK 2.122 billion (€194.3 million) compared to 2021. This continues the Group’s healthy growth with net sales for the first nine months of the year also increasing by 49% to SEK 6.358 billion, when compared to 2021.
Erik Lundén, president and CEO at Bufab Group, commented: “This was my first quarter as CEO of Bufab and I am pleased to report that it was yet another strong quarter despite challenging market conditions. We reported a continued healthy growth, a stable gross margin and a strong result. However, given the geopolitical and macroeconomic situation, the uncertainty regarding the upcoming year has increased.”
“The growth was largely driven by acquisitions completed in the past year, but we also noted a continued good organic growth of 9%. The underlying demand was relatively stable, and the organic growth was mainly a result of price increases and captured market shares. In particular, segments West and UK/North America showed a strong organic growth for the quarter.”
Due to a stable gross margin, and a lower share of operating expenses, both Bufab Group’s operating profit and the operating margin increased significantly. “There is a continued good cost control within the group, and this, together with the organic growth and recent acquisitions, accounts for the good profit development in the quarter. Overall, the operating profit increased by 66% and the operating margin amounted to 12.8%. All segments contributed to the strong development, especially, segments West and UK/North America,” explained Erik.
He added: “The energy crisis in Europe; the war in Ukraine; the high inflation rate; and rising interest rates; indicate major uncertainty ahead of 2023 and point to a weaker economic development. We have noted a somewhat higher level of caution among customers in certain segments. At the same time, we have a well diversified portfolio of customers and product items with good risk diversification. If demand were to weaken, we are well positioned with specific measures for each Bufab company. In addition to this, we continue to focus on efficiency improvements, cost savings and price increases towards customers.”
“A potentially weaker economy implies greater opportunities for strong companies to capture market shares and Bufab has a history of managing challenges in a flexible, dynamic and successful manner. This combined with a progressively broadened offer, and increased customer relevance, provides a solid basis for a continued long-term, sustainable, and profitable growth journey going forward.”
Having spent a decade in the fastener industry experiencing every facet – from steel mills, fastener manufacturers, wholesalers, distributors, as well as machinery builders and plating + coating companies, Claire has developed an in-depth knowledge of all things fasteners.
Alongside visiting numerous companies, exhibitions and conferences around the world, Claire has also interviewed high profile figures – focusing on key topics impacting the sector and making sure readers stay up to date with the latest developments within the industry.
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