From the Interim Report Q1 2025
Solid start to the new year
The first quarter of the year saw a strong increase in profits and a margin of 8 percent, which is an increase of almost 2 percentage points compared to last year. Order intake continued to increase, 18 percent above the previous year. After the end of the quarter, we also signed an acquisition in water treatment. We are pleased to welcome Autofric to the Group, a technically skilled company positioned in sustainable technology and with several touch points with our existing businesses.
The past quarter has been eventful in both big and small ways. The new US administration is off to a flying start, and we have had to get used to watching the news even more closely than before. At the time of writing, the main topic of discussion is tariffs. The direct impact of the current tariff discussions on us is limited as we have mainly European customers. In 2024, less than 1 percent of sales were to customers outside Europe, and virtually all were to customers in China. We have some purchases from companies in the US, but even these are relatively limited, and we have historically been able to absorb effects such as supply chain disruptions, inflation and rising raw material and energy prices without too much impact on our gross margin. More complicated to grasp are the wider effects on the world situation and economy and how global flows of goods are redirected. However, we see that our decentralized model makes us better equipped to be nimble, and thus well equipped to deal with the changing conditions in geopolitics and the world economy that are sure to continue for some time.
Progress in the transition
So far, we have rather experienced gradual market recovery, with good order intake in most of our companies. In some areas, such investments in battery production facilities, demand is weak, but this has been more than compensated for by other areas. The restructuring work in the largest company in Technology & Distribution, Christian Berner AB, is advancing well under the new CEO, and we are already seeing improved margins. Finnish Christian Berner Oy, which was the first to feel the economic downturn in the fall of 2023, has started 2025 very well, with strong order intake growth and an EBITA margin of 11 percent. In Energy & Environment, we are pleased with the continued success of Zander & Ingeström. During the quarter, they won a large order for electric boilers for Boliden Rönnskär, which will be used to stabilize the electricity grid. We create technical solutions for the society of the future.
Exciting acquisition within a focus area
Shortly after the end of the quarter, we signed an agreement to acquire Autofric, a Värmland company active in water treatment, among other things. An acquisition that fits well into our strategy. Autofric started as a technically skilled contract manufacturer more than 40 years ago, and has gradually diversified its activities and developed its own products. We have had a dialog with the company’s owners for more than a year. This means that we have been able to follow the strong development of the company and collaborate to develop a joint plan for the future. The whole Group is excited about the newest member of the family, which will be included into the Energy & Environment business area. Several of our subsidiary management teams in both business areas have already planned future collaborations.
Caroline Reuterskiöld
President and CEO Berner Industrier AB