Bufab Group has reported that in the second quarter its net sales increased by 57% to SEK 2.24 billion (2021: SEK 1.43 billion) of which 16% was organic growth. The Group also completed the acquisition of CDA Polska, a specialist for the Polish construction sector.
Johan Lindqvist, president and CEO at Bufab, comments: “The second quarter was another strong quarter for Bufab. We reported continued strong growth, a stable gross margin, a robust result, and continued acquisitions.”
“We noted strong growth of 57% in the quarter, of which 16% was organic growth. This organic growth was a result of price increases and healthy underlying demand in all segments. It is also gratifying that we continue to capture market shares and that our order intake is stable.”
Adjusted for remeasured additional purchase considerations, Bufab’s operating profit increased by a full 64% and the margin was significantly strengthened. “Although the quarter continued to be affected by supply chain disruptions, long delivery lead times and some component shortages, the situation has stabilised. We are seeing indications among our companies of improved availability and shorter lead times, which together creates fewer disruptions and thus a better flow,” mentions Johan.
Acquisitions continue
In April Bufab acquired the Polish company CDA Polska Sp z.o.o, which has annual sales of approximately SEK 90 million. The acquisition is a strategic addition to Bufab’s business in Segment East and, together with the previous acquisitions of Pajo-Bolte and TI Midwood (TIMCO), strengthens the Group’s offering in the construction industry.
“The process of integrating the recent acquisition is well under way. By applying our Best Practice model, this work strengthens both existing and newly acquired companies,” explains Johan. “We also continue to develop our operations in the long-term by gradually broadening our customer offering and increasing our degree of digitalisation and productivity. For example, we launched a new e-commerce solution during the quarter, implemented more logistic solutions, and improved the efficiency of several processes using Robotic Process Automation (RPA). Our sustainability program is an increasingly important aspect for our customers and us and is an area in which we can really make a difference for our customers. Our efforts have intensified significantly in recent times under the framework of the Science Based Target initiative.”
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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