Bufab Group has reported that in the third quarter its net sales declined by 9.2% to SEK 1.8 billion (2023: SEK 2.07 billion), with organic growth down 2.6%.
Demand in the quarter remained cautious, with continued large variations between different industries and regions. Similar to previous quarters, the strongest developments were noted in energy and defence. Organic growth amounted to -2.6%, indicating an improvement to the previous quarter (-6.6%). The region Asia-Pacific showed a new trend with organic growth of a strong 13.2%, driven by particularly strong growth in China.
Erik Lundén, president and CEO at Bufab, comments: “We have continued our efforts to strengthen the gross margin, which increased by 1.6% in the quarter to an all time high of 30.6%. The gradual strengthening over the past few quarters is a result of the long-term work that began in 2023 to improve our customer and product mix, develop our value creation for customers, as well as achieve purchasing savings.”
“The adjusted operating margin was in-line with last year, amounting to 12.7% (2023: 12.6%), which is a stable level given the challenging market conditions. Our dedicated work with cost control throughout the organisation have yielded the expected results, primarily due to staff reductions, but also reduced overhead costs. At the same time, we continue to invest in driving growth and improving profitability in the
long-term and have continued to invest in our customer offering during the quarter.”
He continues: “Uncertainty regarding the general economic outlook remains, but we see indications of improved demand from general industry, likely not until the first half of 2025. At the same time, a weaker economy creates favourable conditions for a strong player such as Bufab to take new market shares. This, together with our focused work on strengthening our gross margin and on cost savings, will put us in a strong position once the market rebounds.”
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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