Beijer Ref records best ever quarter
20th July 2023
SWEDEN: Wholesaler Beijer Ref has recorded its best ever quarter for sales, profit and operating margin.
Acquisition effects in Q2 boosted net sales to SEK8,654m (€752m), a 45.7% increase on the same period last year. After acquisition and currency effects, organic sales rose 1.7%.
EBITA rose 64% to SEK1,016m (€88m), while EBITA margin was 11.7%, up from 10.4% in 2022.
During Q2, Beijer Ref completed four acquisitions – Shravan Engineering (India), GMC (South Africa), Condex (Bulgaria) and CFD (France).
“Despite high comparative figures, approximately two fewer sales days (a loss of around 3-4 percentage points) and an uncertain macro environment, we continue our positive growth trend in terms of both sales and profit development,” commented Beijer Ref CEO Christopher Norbye.
The EMEA and APAC regions recorded growth of 11% and 33% respectively in the quarter. Sales in North America were said to be “slightly lower” than expected and was negatively affected by component shortages, which affected deliveries of replacement and new installations.
The wholesaler’s important OEM product segment reported organic growth of 19%. HVAC sales are reported to have shown “positive development” in the second half of the quarter, but commercial and industrial refrigeration reported organic growth of just 1%.
EMEA
Sales in the EMEA region increased by 11% in the quarter. The UK in particular is said to have shown good growth. Excluding currency effects, OEM and commercial and industrial refrigeration reported growth of 23% and and 6% respectively. In contrast, HVAC reported weak positive growth overall in the quarter, but the UK, Benelux, France and Spain reported double-digit growth.
North America
Sales in the Swedish wholesaler’s fledgling North American market were said to be “slightly lower” than expected and were negatively affected by component shortages, which affected deliveries of replacement and new installations.
Beijer Ref took its first step into the North American market at the end of last year after agreeing to acquire Heritage Distribution Holdings in a $1,275m deal.
First half
These latest figures mean Beijer Ref’s organic sales rose 7.5% during the first half of the year (January-June). Acquisition effects amounted to 34.2% and currency effects were 6.2%. Net sales increased by 47.9% to SEK16,031m (€1,393m). The group’s EBITA totalled SEK1,718m (€149m) during the first six months of the year, an increase of 68%.
