Byggmax Group’s Board of Directors has decided to update the group’s financial targets, to better reflect the company’s growth ambitions. Byggmax saw a sales increase of 29 per cent from 2019 to 2020. Yesterday, Byggmax Group held a Digital Capital Markets Day. The program covered Byggmax’s position and future ambitions, and also how Byggmax is impacted by some of the biggest trends of our time: discount, the home, and e-commerce.
“We have a strong position and are growing significantly faster than the market, with the fastest growth from e-commerce”, says Mattias Ankarberg, CEO of Byggmax Group. “The new sales target, to reach SEK 10 billion by 2025, clearly shows our ambitions to continue to grow fast. The other targets show our aim to do so with good profitability and dividend to shareholders, while maintaining a strong balance sheet and responsibility for the world around us.”
The updated financial targets are:
Net sales of at least SEK 10 billion 2025 (previous goal: organic growth of 10-15% per year)
Operating profit measured as EBITA of 7-8% (unchanged)
Net debt / EBITDA (excl. IFRS16, EBITDA rolling 12 months) max 2.5x (new target)
Dividend equivalent to at least 50% of net income (unchanged)
Net sales at the EDRA/GHIN member & Swedish home improvement group Byggmax rose by 22.9% in the first quarter to SEK 879m (EUR 81m). Like-for-like sales increased by 20.7% calculated in local currency. The coronavirus crisis contributed to these unusually high growth rates but was not the sole reason. According to a press release from the company, “the Covid -19 virus has tragic and challenging effects on our society, however the financial impact on Byggmax Group in the first quarter has been positive”.
In a detailed commentary, president Mattias Ankarberg writes: “The quarterly sales growth of 23% was driven by three factors with largely equal impact: good market growth throughout the quarter, own initiatives to drive organic sales, and an additional ‘stay at home effect’ that further boosted demand during the second half of March.” He continued “E-commerce continues to be a strength for our Group, and the online share of sales amounted to 18%.”
The company believes that the Nordic consumer market for building materials increased strongly in the first quarter, probably by around 10-15%, with a larger increase for outdoor products.
The Swedish Byggmax group made sales of SEK 1.7990 bn (€170.45m) in the second quarter of 2019 and thus achieved growth of 3.9%. The primary sales channel Byggmax grew by 5.6% to SEK 1.5717 bn (€148.85m). The plus came about through the addition of eight locations compared to mid-2018, as like-for-like figures were minus 1.8%. Overall and before adjusting for currency effects, sales rose by 7.1%. The Skånska Byggvaror sales channel made SEK 202m (€19.14m) and thus 0.4% more sales than in the same quarter of the previous year. In the first half of the year the group’s sales totalled an overall SEK 2.5144 bn (€238.23m) which corresponds to a growth of 4.9%. The Byggmax sales channel grew by 7.0% in the first six months, however made 0.4% less on a like-for-like basis.