BYGGMA ASA - An English version of the already published Q2 2022 Interim Report is now available
BYGGMA ASA - An English version of the already published Q2 2022 Interim Report
is now available
The Group achieved a profit before tax in Q2 2022 of NOK 84.1 million, compared
to NOK 49.0 million for the same period in 2021. Profit before tax in H1 2022
amounted to NOK 170.3 million, compared to NOK 102.6 million in H1 2021. The
operating profit for Q2 2022 was NOK 87.7 million, compared to NOK 54.3 million
in Q2 2021. The operating profit for H1 2022 was NOK 168.6 million compared to
NOK 105.3 million in H1 2021.
The operating profit in Q2 2022 is higher for the Panels segment and the Real
Estate segment, while the other segments have lower operating profit compared to
the same period in 2021.
The Group's sales revenues in Q2 2022 amounted to NOK 683.2 million, which is
NOK 76.6 million higher than for the same period in 2021. The trend in sales
revenue in Q2 2022 is positive in all segments compared to the same period in
2021, except from the Lighting segment which has somewhat lower sales revenues.
In H1 2022, the sales revenues were NOK 1,383.5 million compared to NOK 1,166.4
million in H1 2021.
Net financials for H1 amounted to an income of NOK 1.6 million in 2022, which is
an improvement of NOK 4.3 million compared to the same period in 2021. The main
reason for the reduction in net financial expenses is the gain on the market
value of the interest rate swap in H1 2022 of NOK 16.7 million, compared with
the gain of NOK 7.1 million in the same period in 2021. The loss of a share
derivative was NOK 4.1 million in H1 2022. Net interest expenses (incl. payment
for interest rate swaps) amounted to NOK 9.8 million in H1 2022, which is NOK
0.5 million higher than in the same period in 2021. Of the interest expenses of
NOK 9.8 million, interest on lease obligations amounted to NOK 1.8 million,
which is NOK 0.2 million lower than for the same period in 2021.
The liquidity reserve*) as at 30 June 2022 amounted to NOK 514.5 million, an
increase of NOK 198.4 million from 1 January 2022 and an increase of NOK 269.1
million from 30 June 2021. The Board of Directors will maintain its focus on
capital and cost-efficiency.
Interest-bearing debt*) increased from NOK 611.4 million as of 1 January 2022 to
NOK 715.4 million as of 30 June 2022. In H1 2022, long-term borrowings of NOK
101.8 million was carried out, of which NOK 1.8 million are due to new lease
Investments made in tangible fixed assets and intangible assets in H1 2022
totalled NOK 51.3 million, which is NOK 10.4 million higher than in H1 2021. Of
the investments made, capitalised lease agreements amounted to NOK 1.8 million.
Total assets increased from NOK 1,828.2 million as of 1 January 2022 to NOK
2,038.6 million as of 30 June 2022.
Booked equity as of 30 June 2022 was NOK 661.2 million (32.4%), which is an
increase of NOK 62.9 million compared to 1 January 2022 (32.7%). The reasons for
the change in equity are due to the profit of the year of NOK 133.1 million, a
currency translation difference of NOK 0.4 million and payment of dividend of
NOK 69.8 million.
Byggma monitors the housing market continuously, as this is an important arena
for the company. We see somewhat lower activity in some areas of the market, but
are experiencing increased sale of new product launches introduced to the
market. The variation in the sale in the market in Q2 may affect lower activity
in Q3 and Q4 2022. The number of units is expected to be on 24-25 000 in 2022,
compared to the 26 000 expected in Q1. However, the need for housing units have
been increased to 29 000 which can lead to serious consequences for the housing
supply if the trend continues in Q3 and Q4. Meanwhile, we are still experiencing
high activity in commercial buildings and public buildings. The renovation and
extension market is expected to be stable and on the same level as 2021.
There is uncertainty regarding how the market will react to the steep price
increases previously seen on timber, building materials, and electricity.
Additionally, the interest rate development may affect the activity in the
newbuild and the renovation and extension market. However, we see a price
decrease on timber going forward, which may increase the demand for building
materials. The conflict in Ukraine may also affect markets and factors as access
to raw materials, energy and increased prices on imported goods.
Despite lower commissioning in Q2, Byggma ASA booked increased sales revenues
compared to the same period in 2021. This is mainly explained by price increased
due to increased raw material prices. The vast increase in raw material prices
is the most important explanation factor for the lower commissioning and sales
of new housing units. Several commodities now show signs of lower prices going
forward, among these sawn wood. With lower raw material costs, commissioning and
sales of new housing units may increase again. This is supported by the
increased need for new housing, adjusted up to 29 000 units per year. This may
increase the demand for Byggma ASAs products in the medium and long term.
We are still experiencing stable demand for Byggma's products outside Norway.
The market development has meant that the input factors for several of the
segments are considerably more expensive. Byggma has notified price increases
with effect from 1 October 2022.
Group management is continuously monitoring the situation in order to be able to
implement cost reductions resulting from lower activity levels.
In order to ensure further growth, investment in the sale of the Group's
products outside Norway is an important part of Byggma's strategy.
Innovation and technological development are vital components of the Group's
growth strategy, driven by a forceful determination to invest in essential
equipment and expertise to maintain its position as a leading player in the
Nordic building materials market in the future. Byggma Group is firmly focused
on achieving efficiency, dominance, and profitability.
Byggma is well positioned for implementing its enhancement processes for
maintaining its position as a leading, efficient producer of building products.
Several major investments have been made to streamline our processes. New
investments in equipment have also been decided and this will enable greater
efficiency. In principle, Byggma will be directing its investments toward
digitisation and automation of the production processes, including the
environment and sustainability.
It is an important part of Byggma's strategy to strengthen its position as a
leading original brand manufacturer of environmentally friendly and sustainable
products in the Nordic building materials market.
Byggma Group aims to be an attractive employer. We will continue to focus on
ensuring that all employees in the Group can realise their human potential
through their employment at Byggma.
Vennesla 25 August 2022
The Board of Directors of BYGGMA ASA