BYGGMA ASA - An English version of the already published Q4 2022 Interim Report is now available
The Group's sales revenues in Q4 2022 amounted to NOK 559.5 million, which is
NOK 72.4 million lower than for the same period in 2021. The trend in sales
revenue in Q4 2022 is positive in the Windows segment, but lower for other
segments compared to the same period in 2021. Year to date, the sales revenues
were NOK 2,508.2 million compared to NOK 2,344.3 million in 2021.
The Group achieved and EBITDA in Q4 2022 of NOK 59.6 million, compared to NOK
98.4 million in Q4 2021.
The operating profit for Q4 2022 was NOK 39.3 million, compared to NOK 70.1
million in Q4 2021. Year to date, the operating profit was NOK 326.0 million in
2022 compared to NOK 233.1 million in 2021. The operating profit in Q4 2022 is
higher for the Windows and Beams segment, but lower for the Boards and Lighting
segment compared to the same period in 2021.
The Group achieved a profit before tax in Q4 2022 of NOK 13.4 million, compared
to NOK 65.9 million for the same period in 2021. Year to date, profit before tax
amounted to NOK 300.6 million in 2022, compared to NOK 224.1 million in 2021.
Year to date, net financials amounted to an expense of NOK 25.4 million in 2022,
which is NOK 16.4 million higher compared to the same period in 2021. The main
reason for the increase in net financial expenses is increased interest rates
and debt. The gain on the market value of the interest rate swap in year-to-date
2022 was NOK 15.1 million, compared with the gain of NOK 12.3 million in the
same period in 2021. Year to date, net interest expenses (incl. payment for
interest rate swaps) amounted to NOK 31.4 million in 2022, which is NOK 15.1
million higher than in the same period in 2021. Interest on lease obligations
amounted to NOK 6.6 million, which is NOK 2.6 million higher than for the same
period in 2021.
The liquidity reserve*) as at 31 December 2022 amounted to NOK 308.6 million, a
reduction of NOK 7.5 million from 1 January 2022. 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 1,462.5 million as at 31 December 2022. Year to date 2022, long-term
borrowings of NOK 867.7 million was carried out, of which NOK 221.2 million are
due to new lease agreements. The main reason for the increase in interest
bearing debt is the investment in Norske Skog ASA of NOK 1.016,3 million..
Investments in tangible fixed assets and intangible assets year to date 2022
totalled NOK 131.4 million, which is NOK 41.0 million higher than in 2021. Of
the investments made, capitalised lease agreements amounted to NOK 5.8 million.
The financial statements for 2021 have been restated following a change in
financial statement principle for Byggma Eiendom Lyngdal to investment property
in accordance with IAS 40. See note 13.
Total assets increased from NOK 1,917.8 million as of 1 January 2022 to NOK
2,919.6 million as of 31 December 2022.
Booked equity as of 31 December 2022 was NOK 833.8 million (28.6%), which is an
increase of NOK 165.7 million compared to 1 January 2022 (34.8%). The reasons
for the change in equity are due to the profit of the year of NOK 251.3 million,
a currency translation difference of NOK 1.0 million, loss on financial
investment booked in OCI of NOK 14.8 million and payment of dividend of NOK 69.8
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. Total number of housing units sold in 2022 was 19,371 which is 26% below
2021. The variation in the sale in the market in Q4 may cause lower activity in
H1 2023. The largest reduction in units related to apartments which is not the
main market for Byggma. Total commissioned units in 2022 was 23,199 units which
is 9% below 2021. Small houses is down ca. 17%. 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 leading to pent up demand. 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
Vast increase in raw materials is the most important explanation for lower sales
and commissioning of new housing units in 2023. Additionally, the interest rate
development may affect the activity in the newbuild and the renovation and
extension market. The conflict in Ukraine may also affect markets and factors as
access to raw materials, energy and increased prices on imported goods. However,
we see a price decrease on timber going forward, which may increase sales and
commissioning of new housing units increasing the demand for building materials.
This is supported by the upward adjustment of the official number of housing
units needed in Norway to 29.000 per year. This may increase the demand for
Byggma ASAs products in the medium and long term.
We experience the same market development 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 implemented price increases
with effect from 1 October 2022 in order to maintain a reasonable margin.
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.
As per 22 February 2022 Byggma ASA owns ca. 18,0 % of the share capital in
Norske Skog ASA. Together with related party Drangsland Kapital AS, Byggma ASA
controls ca. 23.6% of the shares in Norske Skog ASA.
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 22 February 2022
The Board of Directors of BYGGMA ASA