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 ofNOK 84.1 million , compared toNOK 49.0 million for the same period in 2021. Profit before tax in H1 2022 amounted toNOK 170.3 million , compared toNOK 102.6 million in H1 2021. The operating profit for Q2 2022 wasNOK 87.7 million , compared toNOK 54.3 million in Q2 2021. The operating profit for H1 2022 wasNOK 168.6 million compared toNOK 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 toNOK 683.2 million , which isNOK 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 wereNOK 1,383.5 million compared toNOK 1,166.4 million in H1 2021. Net financials for H1 amounted to an income ofNOK 1.6 million in 2022, which is an improvement ofNOK 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 ofNOK 16.7 million , compared with the gain ofNOK 7.1 million in the same period in 2021. The loss of a share derivative wasNOK 4.1 million in H1 2022. Net interest expenses (incl. payment for interest rate swaps) amounted toNOK 9.8 million in H1 2022, which isNOK 0.5 million higher than in the same period in 2021. Of the interest expenses ofNOK 9.8 million , interest on lease obligations amounted toNOK 1.8 million , which isNOK 0.2 million lower than for the same period in 2021. The liquidity reserve*) as at30 June 2022 amounted toNOK 514.5 million , an increase ofNOK 198.4 million from1 January 2022 and an increase ofNOK 269.1 million from30 June 2021 . The Board of Directors will maintain its focus on capital and cost-efficiency. Interest-bearing debt*) increased fromNOK 611.4 million as of1 January 2022 toNOK 715.4 million as of30 June 2022 . In H1 2022, long-term borrowings ofNOK 101.8 million was carried out, of whichNOK 1.8 million are due to new lease agreements. Investments made in tangible fixed assets and intangible assets in H1 2022 totalledNOK 51.3 million , which isNOK 10.4 million higher than in H1 2021. Of the investments made, capitalised lease agreements amounted toNOK 1.8 million . Total assets increased fromNOK 1,828.2 million as of1 January 2022 toNOK 2,038.6 million as of30 June 2022 . Booked equity as of30 June 2022 wasNOK 661.2 million (32.4%), which is an increase ofNOK 62.9 million compared to1 January 2022 (32.7%). The reasons for the change in equity are due to the profit of the year ofNOK 133.1 million , a currency translation difference ofNOK 0.4 million and payment of dividend ofNOK 69.8 million . OutlookByggma 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 inUkraine 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 forByggma's products outsideNorway . 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 from1 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 outsideNorway is an important part ofByggma'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 ofByggma'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 atByggma . Vennesla25 August 2022 The Board of Directors ofBYGGMA ASA
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