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 2021.
The operating profit in Q1 2022 is higher for all segments compared to the same period in 2021.
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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 2021.
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 agreements.
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.
Outlook:
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
Kilde
