ACR-News

G & L Beijer, Europe's largest refrigeration and air conditioning wholesaling group, has reported a significant increase in sales in 2012 thanks to its acquisitions of Toshiba and United Refrigeration.
While sales increased by 15% to SEK6,758.3m for the whole of 2012, if the acquisitions are taken out of the equation sales fell by 2.7% for the full year.

Beijer completed the purchase of the Toshiba heating and air conditioning product distribution business across Germany, France, Spain, Portugal, Italy, Sweden, Finland, Poland and the three Baltic States in October 2011. United Refrigeration's wholesale operations in France and the UK were added later the same month.

In the fourth quarter of 2012, sales amounted to SEK1,543.3, down from 1,681m in 2011. The fall was atributed to lower demand and the strength of the Swedish krone. Organi­cally, sales fell by 5.9%. The seasonal nature of Toshiba's operation affected sales negatively during the fourth quarter compared with the corresponding quarter in 2011.

Fourth quarter sales in southern Africa and Thailand continued to develop positively. The sales volumes in southern Europe, including France, Italy and Spain, were marginally lower. Volumes also declined in the Nordic countries and eastern Europe. In central Europe, including Belgium, Holland and Switzerland, the sales volumes increased slightly compared with the previous year.

The acquisitions contributed sales of SEK1,591.6m in total for the full year. United Refrigeration's operations in France and the UK have been restructured which has resulted in lower expenses and increased profitability. While Toshiba sales fell in 2012 compared with 2011, G&L Beijer says that the business has developed in line with expectations, taking into account a slowdown in demand.

During the year, a number of structural changes and cost savings were carried out aimed at parrying the reduced demand in the market. In Switzerland, the operations were merged from three into two companies. Dean & Wood's office in London was closed and the operation moved to Leeds. In Italy, Belgium and Holland, staff reductions were made. In Ireland, the Gasco business it acquired at the end of 2012 was merged with the existing operation within Dean & Wood. The different measures are expected to generate annual cost savings of around SEK40m.

During 2012, G & L Beijer also established a refrigeration wholesale operation in Germany with two offices, one in Ratingen and one in Leipzig.