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Byggmax Continues To Take Market Share

Byggmax store

Byggmax, a leading Nordic retail chain offering construction materials and do-it-yourself products, has reported on third quarter trading, covering the nine months ended 30th September.

SUMMARY OF THE THIRD QUARTER OF 2021

• Net sales increased to SEK 2,400 M (2,200), representing a growth of 9.1 percent. Exchange rate effects had a positive impact on net sales of 0.2 percent.

• The Group’s currency adjusted like-for-like sales increased by 2.3 percent. 

• The gross margin was 34.8 percent (33.1).

• EBITA amounted to SEK 406 M (335), with an EBITA margin of 16.9 percent (15.2).

• EBIT amounted to SEK 395 M (325), with an EBIT margin of 16.4 percent (14.8).

• Net profit for the period amounted to SEK 306 M (250).

• Earnings per share totalled SEK 5.02 (4.09).

• Cash flow from operating activities amounted to SEK -230 M (-311).

• Byggmax Group has per August 31, 2021 accessed the acquisition of 100 percent of the shares in Contera AS, owner of the retail concept Right Price Tiles with 14 stores, of which two franchise.

• Two (three) stores opened during the period.

• The Board of Directors of Byggmax Group AB has decided to exercise the authorization granted by the Annual General Meeting on May 6, 2021 and initiate repurchases of own shares.

The maximum amount for which shares may be repurchased may not exceed SEK 200 million.

LEARNINGS FROM THE PANDEMIC YEARS

Mattias Ankarberg, President of Byggmax, said: 

During the covid-19 pandemic demand for DIY products increased strongly, which we of course benefitted from. At the same time the last few years’ work to modernize Byggmax have generated strong results. We can now conclude: 

Byggmax has taken a lot of market share. The market has increased by ca 22 percent since before the pandemic (last twelve months compared to 2019), and during the same period Byggmax Group’s sales has increased 43 percent, which confirms the strength of our modern discount concept.

We are now successful in new categories, e-commerce and new countries. Compared to before the pandemic (last twelve months compared to to 2019) both e-commerce under the Byggmax brand and sales of garden products have doubled. Sales has also increased strongly for assortments related to smaller home improvement projects, e.g., storage, fastening, electricity and tools. During 2019 we turned around the previously unprofitable business in Finland, and during 2021 we have successfully entered Denmark.

We have strengthened our leading discount position, and at the same time consumers increasingly associate Byggmax with quality, relevant assortment and good service. 

We realize big scale effects from increased sales. The EBITA margin for the last twelve months has more than doubled to 12.3 percent, compared to 5.1 percent 2019.

In addition the cash flow from our operations allow both investments for the future and transfer of value to our shareholders. Our balance sheet has strengthened compared to previous year – despite investments for organic growth, two completed acquisitions, dividend paid, and the recently launched share buy-back program.

PROMISING FUTURE PROSPECTS

We are now moving towards a new market situation. We reiterate our market view, that the DIY market will be larger after the covid-19 pandemic then before, but not as large as during the pandemic.

The shift towards discount continues, and all growth initiatives have more to give. We continue to upgrade stores, improve our e-commerce, open new stores, and for the right opportunity complement with add-on acquisitions. Our strong balance sheet also allows increased growth investments during the coming years.

We now continue together towards SEK 10 bn in sales 2025! 

Source : Byggmax

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20 October 2021

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