BYGGMA ASA - Interim Report for the First Quarter of 2022
The Group achieved a profit before tax in Q1 2022 of NOK 86.1 million, compared
to NOK 53.6 million for the same period in 2021. The operating profit for Q1
2022 was NOK 80.9 million, compared to NOK 50.9 million for the same period in
The operating profit in Q1 2022 is higher for all segments compared to the same
period in 2021.
The Group's sales revenues in Q1 2022 amounted to NOK 700.3 million, which is
NOK 140.6 million higher than for the same period in 2021. The trend in sales
revenue in Q1 2022 is positive in all segments compared to the same period in
Net financials for Q1 amounted to an income of NOK 5.2 million in 2022, which is
an improvement of NOK 2.5 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 Q1 2022 of NOK 11.1 million, compared with
the gain of NOK 7.4 in the same period in 2021. Net interest expenses (incl.
payment for interest rate swaps) amounted to NOK 5.6 in Q1 2022, which is NOK
1.1 million higher than in the same period in 2021. Of the interest expenses of
NOK 5.6 million, interest on lease obligations amounted to NOK 0.9 million,
which is NOK 0.1 million lower than for the same period in 2021.
The liquidity reserve as of 31 March 2022 amounted to NOK 319.3 million, an
increase of NOK 3.2 million from 1 January 2022 and a decrease of NOK 443.7
million from 31 March 2021. The Board of Directors will maintain its focus on
capital and cost-efficiency.
Interest-bearing debt decreased from NOK 611.4 million as of 1 January 2022 to
NOK 578.2 million as of 31 March 2022. In 2022, long-term borrowings of NOK 1.8
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 Q1 2022
totalled NOK 16.6 million, which is NOK 4.1 million higher than in Q1 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
1,892.2 million as of 31 March 2022.
Booked equity as of 31 March 2022 was NOK 662.6 million (35.0%), which is an
increase of NOK 64.3 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 67.4 million and a
negative conversion difference of NOK 3.0 million.
Sale of new housing in the Norwegian market shows a negative development of 8%
in Q1 2022 compared with the same period in 2021. Commission of newbuilds has
increased 2% for the same period. The detached houses market shows a decrease of
18% in sales and 16% in commissioning, while small houses have decreased 11% in
commissioning and 32% in sales in Q1 2022 compared to the same period in 2021.
The trend has strengthened in March 2022 with a decrease of 33% in commissioning
compared to March 2021. Byggma monitors the market continuously, as this is an
important arena for the company. The decrease in sales in Q1 and commissioning
in March may lead to lower activity towards the end of Q2 2022 and the rest of
the year, but the number of units expected to be on 26 000 for 2022. 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 on timber, building materials, interest, and electricity.
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.
We are still experiencing stable demand for Byggmas 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 April 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 19 May 2022
The Board of Directors of BYGGMA ASA