Bufab Group reported the first quarter of 2021 was operationally very challenging for the company. Despite this, it still achieved its best-ever sing quarter sales and operating profit.
Net sales for Q1 2021 increased by 8% to SEK 1.423 billion (€140.4 million) and organise growth was +14%. EBITA increased by 40% to SEK 177 million (Q1 2020: SEK 126 million) with an operating margin of 12.4% (Q1 2020: 9.5%).
President and CEO Jörgen Rosengren comments: “Already during the end of 2020, we saw a return to healthy growth with most of our customers. This trend continued into the first quarter of 2021. Organic growth was 14 percent, albeit in relation to a weak first quarter in 2020, mostly in Asia. We saw both good underlying demand and continued market share growth.”
“During the end of last year, the growth was mainly driven by our customers regaining lost production volumes from the beginning of the year. We believe the growth at the beginning of 2021 to be more solid, and mainly driven by stronger demand from end customers. This is particularly true for industries that have for various reasons benefited from the coronavirus pandemic.”
“The dramatic shifts in demand caused difficulties during the quarter in the global supply chains. Raw materials and production capacity were affected by bottlenecks and sharp price increases. Certain categories of components have been difficult to obtain at all. Transport systems also experienced major capacity problems, particularly in container freight from Asia to North America and Europe. Bufab has been hit with significant increases in the cost of components and freight, which in turn has led to an increased workload as all prices with both suppliers and customers need renegotiation. Overall, the supply situation and corresponding workload at Bufab were under immense strain during the quarter.”
Jörgen Rosengren adds: “We are therefore particularly proud that, under such challenging circumstances, we have been able to keep our customers supplied with the billions of components featuring more than a hundred thousand unique specifications that we manage on their behalf. We are convinced that this strengthens our customer relationships in the short and long term, while laying the foundation for further growth going forward.”
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