Industry News

Bufab Group reported 2016 net sales at SEK 2.847 billion (€299 million), an increase of 16% on 2016. Organic sales growth was 4%.

The acquisition of Montrose Holdings Ltd in December was Bufab’s fourth in two years. President and CEO Jörgen Rosengren said: “…our acquisition strategy is continuing to generate results. The acquired companies are developing well, work well with the other subsidiaries and made a strong contribution to Bufab’s earnings trend and cash flow during the year. We are continuously evaluating additional acquisition opportunities. As a result of a healthy cash flow in 2016 and an increased credit line, we have the financial capacity for more acquisitions.”

The report notes that Bufab’s operating expenses were high during Quarter 4, in part owing to non-recurring acquisition related expenses of SEK 6 million. Half related to an increased additional purchase price for one acquisition, “which has developed far better than expected”. The quarter continued to see a “substantially stronger gross margin compared with the preceding year, primarily thanks to purchasing savings”. Operating profit for the quarter was 39%.

Full year operating profit rose to SEK 272 million from SEK 197 million in 2015. The operating margin increased to 9.5% from 8%. Adjusted profit after tax was SEK 187 million, up more than 50% on 2015 at SEK 125 million.

Net sales, operating profit and profit after tax were all records for Bufab, which the CEO emphasised as: “The result of purposeful work in-line with the growth strategy established in 2012.”

Looking forward, Jörgen Rosengren said: “Going into 2017, we see challenges in the prevailing exchange rates, as well as a trend towards rising commodity prices. On the other hand, we hope to continue to increase our market share. We also witnessed a healthy order intake during Quarter 4, which bodes well for the beginning of 2017.”