Bufab Group reported first half 2018 net sales increased 18% to SEK 1.925 billion (US$212.9 million), Fastener + Fixing Magazine reports. Organic growth was 10%. EBITA rose 20% to SEK 204 million.

“The favourable performance that marked the beginning of the year continued during the second quarter,” stated CEO Jörgen Rosengren. “Solid growth at 19% was driven by acquisitions, increased market shares and favourable underlying growth, but also by positive calendar effects.” 

Bufab’s International segment accelerated its earnings trend, with 25% growth achieved through strengthened market shares in most markets and successful acquisitions, according to Fastener + Fixing. Gross margin improved significantly due to currency effects and price increases that exceeded material-driven cost increases. Operating profit grew more than 50%.

Bufab’s Swedish business, however, reported a poorer earnings trend during the second quarter.

“Growth was good,” said Rosengren, “but the gross margin was lower than earlier in the year and in 2017. This means that we have not fully succeeded in offsetting the continued negative trend for the SEK and raw materials prices through price increases to customers.”

Overall operating profit in Sweden declined, contributed to by a “too high” cost level, Fastener + Fixing reports.

Uncertainty regarding economic development had not yet impacted Bufab’s order intake. While satisfied with the quarter and half year, Jörgen Rosengren said Bufab was watchful for signs of a downturn but aimed to increase market share at a similar or faster rate than previously. He added,

“We need to strengthen our gross margin through further price increases,” Rosengren noted. Web: Bufab.com