Bufab Group delivered high organic growth and strong earnings despite a continued very challenging operational situation following the strained supply chains. Net sales for Q3 2021 increased by 21% to SEK 1.425 billion (Q3 2020: SEK 1.181 billion).
Organic growth amounted to 20% which, alongside a weak comparative quarter, was primarily due to continued strong underlying demand in all segments, but also due to continued captured market shares.
“The economic recovery and strong increase in demand after the pandemic created major challenges for the industry globally. This is primarily in the form of an extremely strained supply chain and higher prices for raw materials and freight, but also because there is now a shortage of capacity at many stages of the supply chain,” comments Johan Lindqvist, president and CEO at Bufab.
Similar to most other companies Bufab has also been impacted by large price increases for raw materials and freight and has succeeded to date in offsetting this by passing these costs on to the customer. This work, together with the higher volumes relative to the comparative quarter, resulted in a good gross margin in the quarter.
“We have a continued focus on acquisitions and we have a strong pipeline of potential acquisition candidates in several geographies,” says Johan. During the quarter, this resulted in the acquisition of US-based Components Solutions Group. The company, which has annual sales of approximately SEK 280 million and 85 employees, will strengthen Bufab’s position in the North American market.
After the reporting period Bufab also acquired Jenny Waltle and Tilka Trading with annual sales of SEK 190 million and 43 employees and net sales of SEK 50 million and 18 employees respectively. The companies have operations in Austria and Sweden.
“Overall, we are very proud that we, despite a challenging environment, have succeeded in maintaining supplies to our customers in a favourable manner. I want to sincerely thank all of our 1,450 solutionists for the incredible focus and flexibility they demonstrated during the year,” concluded Johan.
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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