Byggmax Group AB (publ) (BMAX) Earnings Call Transcript & Summary

Hello, and welcome to the Byggmax conference call. [Operator Instruction] Just to remind you, this conference call is being recorded. Today, I'm pleased to present Mattias Ankarberg, CEO. Please go ahead with your meeting.

Thank you, and welcome, everybody, to this very much Q4 con call. With me, I also have our CFO, Helena Nathhorst. And as usual, we will speak to the presentation available on our website. I will start, and then I will cover financials before we wrap up and move to Q&A. And we'll start on Page 2 in the presentation. So we ended a very strong year, a record year with another really strong quarter, which we're really happy about. We are obviously in a period where we have extreme comparables to face. But despite that, Q4 net sales increased by 7% on top of 29% last year to just over SEK 1.3 billion. We continue to take market share quite a lot. So in a market that is now stabilizing is something we will come back to in a minute. Like-for-like sales did increase a bit, 6%, but also on top of 28% from last year, so above 20% on a 2-year basis, which, of course, is something we're very pleased about. And we continue to have e-commerce as a big share of our total sales. We also maintained slightly exceed last year's record level on gross margin, and we continue to have very strong cost control. So in all, as like-for-like did decrease a little bit. EBITA decreased to SEK 25 million versus last year, but we also now see that we are at a level well above all years prior to 2020, which is, of course, positive. For the full year, sales increased to SEK 7.6 billion, an increase of 12%, and we are currently at an EBITDA margin of almost 12%, 11.7% compared to 10.4% last year. On key events, Page 3. It's a fairly small quarter for us and not that eventful, we've been really focused on executing our organic growth initiatives. And the main focus has been in the quarter to upgrade our store portfolio to what we call Store 3.0, the better-performing concept. We've done that at a record pace during the quarter. We now end the year with just over 2/3 of our store portfolio as Store 3.0. We opened 1 new store in the quarter, and we also completed a share buyback program during the autumn amounting to check SEK 200 million. We are -- all our organic growth initiatives, we could say on Page 4, are built around us being a discounter. And those who follow a retail loan that is strong phenomena across geographies and retail categories. And we are really pleased that despite a lot of the work on improving quality and assortment in e-commerce, we have also strengthened our discount position during 2021 even more. And we also get recognized for it by independent surveys in several countries. So this is still very much a foundation and the hallmark for our business. Continuing on the external side on Page 5 and looking at the market environment, which is, of course, really interesting given how this industry has been impacted by the pandemic. There are 2 important messages to share with you today on Page 5. The first one is that we continue to take a lot of market share. We are now happy to have public statistics on the consumer market since 2 years, both in several countries, and we increase in local currency, 6% in the quarter versus the market decreasing quite a bit. And for the full year 2021, we increased 12% of sales versus a flat market. So for those of you who have followed us, that is just a continuation of many quarters now continuously with market share gains on our part. The second, perhaps a little bit new and interesting observation regarding the market is that we can now look back on the second half of 2021 and see a market that is stabilizing at the new level. And if we compare the market to last year, yes, in the Q4, it declined by 6% to 8%, but compared to 2019, i.e., before the pandemic, the market increased by around 8% to 10%, which happens to be exactly the same increase as in Q3. So we now with a bit more open society, removed pandemic restrictions during the autumn and people returning partly to the office and traveling domestically, et cetera. See a market level, which is below the pandemic level but has stabilized at almost 10% above the pandemic period -- pandemic level, sorry. And again, there are factors moving in different ways to this, as mentioned, some of the pandemic effects impact negative versus last year. But also we see continued or high activity or record high activity around things related to the home. So there has been a record high housing market activity in 2021. We continue to see in consumer research and in real behavior that many consumers expect to continue to work partly from home, and there's a lot of leisure activities now connected to the home. So all in all, not at a pandemic level, but stabilizing at the level clearly higher than before the pandemic. If we're then on Page 6, leave the external factors and focus on our own efforts, we have been -- continued to be focused on the 4 main growth initiatives that we have now executed for quite some quarters with good results, and we are, of course, pleased to see that they continue to deliver really good growth results for us. And we'll go through some of them in a bit more detail in a minute. But just to get the overview. We have executed a lot of store upgrades as mentioned, and we know that they drive 6% on average per store, which is, of course, really positive. E-commerce continues to perform really strong for us. It did decline in total a bit versus last year and also facing 60% comps. And this has a very natural explanation. We continue to actually to see very strong positive growth momentum in the store assortment product, but there are certain online exclusive categories that are impacted negatively by supply disruptions from Asia, which impact the total. So we can get back to more around that in a second. We have opened one new stores, 10 stores in total during the year and which has added 2% of sales in the fourth quarter, and then on top of that, we have acquired stores, which is not included in the 2%. But they are in the last comment, which is that the acquisitions actually contribute with a 9% growth in the quarter. We have good development or I would say, strong development in both the acquisitions and particularly the most recent Norwegian right price tiles is less seasonal and impacts the smaller quarters of Q4 and Q1 more for us and really contributes. So 4 initiatives that all continue to deliver growth for us in a very positive way. And I will now say a few words more about some of these. And turning to Page 7. We continue to have a really high focus on e-commerce and have had, as you probably know, a really good development now for a while. We have, as I mentioned, continue to have a very strong momentum on the store assortment products or the products that are sort of available for sales, both when it comes to collective store, which has been the strongest driver again, but also for home delivery. There has been -- Byggmax has been fortunate to not be materially impacted by supply disruptions as we purchase most of our things regionally or locally, but certain online exclusive categories, we do depend on Asian supply, for example, lighting and bathroom and those have had a negative development due to the supply disruptions, partly compensated by very strong momentum in other online exclusive categories but not covering the total net. In all, we continue to see that the Byggmax stores linked to e-commerce is delivering the fastest growth. Again, collected store is the fastest-growing channel for us and has -- as e-commerce has doubled for us in 2 years, collected store has tripled. So it's the good fastest-growing channel, and we also continue to see that our e-commerce sales increase in geographies where we open new stores, which is about 15% e-comm left. So good effects of combining the 2 channels. On Page 8, we mentioned something more about the main focus for the quarter, which has been the store upgrades. And again, we have now 3 formats that we operate with the Byggmax brand, all have a store 3.0 version. We have the small-town format, which obviously is a format for smaller catchment areas. We have the regular format, where we also now include a small garden department since 2 years back, and we have the large format where we have a wider assortment and including a larger carbon department. And all of those have a Store 3.0 version and all of those Store. Store 3.0 versions means that we add more product categories and a new store concept with higher quality experience. So when we convert stores, we upgrade the store environment to a better experience and a better layout and also we add more product categories. And again, these upgrades are now over a long time shown to see lifting up sales for store by 6%. We have also turned to Page 9, some portfolio details, upgraded the portfolio to store 3.0 at the highest pace we've ever done so far, and we end the year with 68% of the Byggmax to our portfolio as Store 3.0. We have opened one new store in the quarter, we closed 2. We have in all open -- sorry, upgraded 25 stores to now a total of 123. Then again, that's 68% of the total portfolio. In addition to the Byggmax stores, we also have 12 new stores coming in Q3 acquired from Right Price Tiles, which are in the Byggmax segment, but not in the Byggmax brands, not included these stores. We will come back to it later, but we, of course, have plans to continue to expand also in 2022. We have already announced 9 new stores for '22. We -- I touched on the most recent acquisition on Page 10, Right Price Tiles a few times. So it could be -- and we have a good contribution from that business in the quarter. So we thought we'll work to recap that a little bit, the company and the plans we have since it is very new. It closed on last of August, so 1 month in the Q3 and then now the first quarter in Q4 with right price tile, sorry, Right Price Tiles fully. So just as a quick recap. The business is a Norwegian discount business focused on tiles and accessories, complemented by bathroom products and flooring. It's about just over 15 years old and has had a really good organic development since then, present in Norway. Last year -- or sorry, 2020 performance of SEK 300 million and SEK 34 million EBITDA and continued good performance in 2021, including the last quarter with us as an owner. We like this because it's a discount business, and it's a strong business in the category, but we also like the category per se. It is in a pilot phase in a sort of more of an all-year category with good margins, whereas Byggmax business is quite cheap some of you are aware. It is also a category which they're a little bit more younger customers, bathroom renovation tends to be that, and it's also more of a family project where decisions are made as a sort of couple typically. And there are new consumer-focused players in the Norway. So we are now planning, of course, to both use the strong product portfolio to bring it into Byggmax stores and Byggmax e-commerce already starting this year, but also to expand this concept throughout the Nordics and we will do it under Byggmax brand, and we hope to open the first store in Sweden during the second half of 2022. We have a second segment, which is a smaller segment, 9% of the group sales on Page 11, which is Skånska Byggvaror and Skånska Byggvaror also had a really good end to a record year. And sales in the fourth quarter, almost in line with last year's record. For the full year, a 10% sales increase and a really good continued profitability development. It's also an interesting business for us in the sense that it operates more with order intakes for later deliveries. And in the Q4 last year, we had a really record high order level for Skånska Byggvaror and we are really pleased to see now that the order intake in this quarter is almost at that really high level, which, of course, is a positive sign for the future. We will continue also for contributing more to execute sort of proven initiatives for growth that we have seen delivering now for several years. They are mainly focused on product development and initiatives around digital sales and marketing and then thirdly, continue to build up the presence in Norway and Finland. So with that business update, I turn over to Helena for the financials.

We are on Page 12, looking into sales development in the fourth quarter. And we end the year with a strong quarter. It has continued growth despite extreme comparables and the Byggmax sales increased by 6.5% in the quarter. Like-for-like sales decreased by 5.6%. And again, that is based on very high comparables. And in the long term, it is levels well above pre-pandemic and 2019. We have acquired the Danish [indiscernible] and Norwegian Right Price Times prior to the quarter, and they add 9.6%, to Byggmax segment sales. We have currency exposures in euro and NOK and then the movement in NOK have not within corona has an impact on the sales development in the quarter. We move to next page and have the sales in development in 2021. Byggmax delivered another record year on top of a strong 2020 and sales increased by 12.4%. The like-for-like sales increased by 5.4%, and we see a continued growth momentum and market share gains in the stabilizing market and this is seen in both our Byggmax and Skånska Byggvaror segment. Growth has contributed from our own initiatives. We have the online sales with broader assortment and improve delivery flexibility, store upgrades at a record pace, doubled number of upgrades versus 2020 and we have worked with the store portfolio, opened 10 new stores in the year. On Page 14, we have the income statement for the fourth quarter. And net sales in the fourth quarter increased by 6.5% and reached SEK 1.3 billion. Gross margin strong, in line with all-time high last year. We continue to have the scale from our growth and the acquisition of Right Price Times had a positive impact on the margin in the quarter. We continue to focus on cost control. And the [indiscernible] is in all related to new stores and the acquired businesses. Small EBITDA decrease in the period an EBITDA of SEK 25 million and EBITDA margin at 1.9, strong finish on a smaller quarter on a more stable market. Next page is the P&L for the full year. And Byggmax got another record year, and we had sales increased by 12.4% and reaching SEK 7.645 billion. Again, gross margin improvement, it is impacted by consumer prices increased prior to the anticipated raw material prices increase, and this was especially seen in the second and the third quarter and we also have the scale effect and a product mix, and it's favored by both segments contributing to the margin. We continue to focus on efficiency and costs related to new stores amounted to SEK 117 million. And the comparable cost increased by EUR 39 million in 2021 and the increase is related to our growth initiatives, mainly such as upgrading and improvement and investing in e-commerce portfolio. We have an EBITDA increased to SEK 895 million and a margin of 11.7%. And both the Byggmax and the Skånska Byggvaror contributed to the increased sales and the improved performance in 2021. If we move on to Page 16, we have a strong cash flow to fund growth and shareholder return. The cash flow from operating activities amounted to SEK 814 million for 2021. And the cash flow increased from the improved EBIT and contributed to the stronger cash flow while inventory movements rated in the other direction in the year. Our balance sheet strengthened significantly in 2020, and it remains strong in 2021. Debt amounting to SEK 804 million at year-end versus EUR 467 million at year-end 2020. And then looking into net debt position at year-end 2021of SEK 804 million. It takes accounts for a year with increased investments in growth initiatives, high distribution of funds to shareholders, both through dividend and buyback as well as 2 M&A activities. And on Page 17, as mentioned, we have both the dividend and share buyback program in 2021. And the program of a buyback of SEK 200 million is completed in the fourth quarter prior to year-end. And we have repurchased equivalent to 3.9% of the outstanding shares. And the intention is that the repurchase are to be withdrawn through reduction of the share capital and that is to be a decision of the general annual meeting. The Board of Directors proposed a dividend of SEK 4 per share, and that's an increase versus last year of SEK 2.75.

Thank you, Helena. I will try to wrap up in just a few pages, and then we will open up for questions. We are now on Page 18, which is our performance versus our financial targets. And we continue to be well on track to meet our financial targets. We have a target if we start from the top of reaching SEK 10 billion in sales by 2025. We are now at SEK 7.6 billion and in the fourth quarter, specifically, we continued to grow, thanks to our growth investments despite a market which is stabilizing and declining versus last year. The EBITDA margin target is still be between 7% and 8%. We're currently at 11.7%. And for those of you who care to do the math, you will realize that where we are now seeing a stable market and additional growth investments with Byggmax. This is very much in line with our ability to reach the EBITDA margin target, i.e., a stabilized market and continued growth investments still with the ability to reach 7% to 8% margins. We continue to have a very strong balance sheet. We have a net debt to EBITDA, excluding IFP -- IFRS 16 of 0.8x, just slightly above where last year. million. And as Helena said, we have, during the year, paid a dividend of $2.75 per share and SEK 200 million buybacks. We also always include our climate target when we talk about financial targets, where we have an ambition to decrease CO2 equivalents from goods transport by 70% to 2030, we're currently at 32% in 2020 before we get the update numbers for '21 soon. So if we summarize on Page 19, where we stand ahead of 2022, I turn to a bit more forward-looking here on 2 pages. We can summarize the position as we are very much ready for 2022 and look forward to it. 5 points from our side. First of all, we see a market that is now stabilizing at a higher level compared to before the pandemic, although not at the pandemic level. We see that we have all the work we've done over the last 3, 4 years to modernize the Byggmax discount concept means a lot of market share growth. Over a 2-year period, the market is up 20%, and Byggmax Group is up 45%, which we see as a clear signal to confirm the strength of our concept. We also have, on Page 3, a different and larger footprint than we had just 2 years ago. We have doubled our sales in e-commerce. We have doubled our sales in Garden. We have really strong performance in other sort of small fixed categories. We turned around Finland. We entered Denmark and we have made acquisition into tiles category. So a broader base to stand on as we move forward, which we feel positive about. And as mentioned in the beginning, it's really important for us that we remain core to the discount position. After all, this is a really strong mega trend and a trend that we are building our company around. And we happy to see that we have sort of further strengthened that in 2021 and remain the #1 hard DIY discounter in the Nordics. And lastly, to basically summarize what Helena went through regarding the financials. We continue to see that we get a really big scale effect, and we generate a lot of cash, which allows us to continue to invest in growth and distribute funds to shareholders. So specifically on Page 20, what we are focusing on is slightly boring maybe, but very much a continuation of what has given good effect for us for the last few years. We continue to focus on the proven growth initiatives that still have more to give and build out what we call the modern discount concept through these initiatives. So we will continue, specifically at a record pace with store upgrades here now also in Q1 2022 to try to be as ready as we possibly can for the high season when it starts in Q2. We continue to build out our e-commerce offer with a larger assortment and better services. We will also open new stores in 2022, and aim to open at least 15 new. And that includes 2 new formats. The first one is a new format too and the retail parks over the first store will be in one of Sweden's biggest shopping areas in [indiscernible] during the summer. And then we also plan to take the Right Price Tiles concept to, firstly, Sweden under the Byggmax brand, and we hope to open that first store during the second half. Lastly, we are also looking at the add-on acquisitions, of course, at the appropriate opportunity and the fit with the Byggmax model. So in all, we continue to focus on what has given us success so far and hope that, that will continue to be as successful in 2022, which we feel really positive about. And then we are fortunate to have trends that give us good support going forward. And we reiterated view that the market will be larger post the pandemic than pre the pandemic, but not as large as during the dynamic. We continue to see that the role of the home increases with more consumers working partly for home. We continue to see that the shift to discount is accelerating in a higher price environment and made enabled also by easier price comparisons with e-commerce, et cetera. And we also have a lot of new DIY-ers and e-comm customers since the last 2 years during the pandemic. So continued focus on the proven initiatives and support from good macro trends. We would also just lastly mention that we will have an investor update short 1-hour investor update to share a bit more about our initiatives in the journey ahead. The date will be March 28, 2022. It will be digital, and we will share details with you separately. With that, we open up for questions and turn to operator.

[Operator Instructions] Our first question comes from the line of Magnus Raman from Kepler Sheryl.

Yes. Well, if we look back when you presented Q3, you talked about witnessing initial price decline on timber. Perhaps you can elaborate on how this has developed in terms of both inbound purchase prices and outbound and consumer pricing?

Magnus, yes, happy to. You're right, that is what we said in Q3. And we continue to see a decline in both sort of inbound and a slight decline in outbound. But to be really transparent at a much slower pace than at least I personally had anticipated. Obviously, there's been a really big price hike compared to 2 years ago or 18 years ago. And I would have guessed that we would have moved a bit quicker on that, but that has been in the negative sort of direction, but at a very slow pace.

All right. That's clear. Then perhaps, could I also ask about your cost development here, the OpEx growth is nearly flat on an underlying basis, we adjust for store expansion and acquisition costs. Is -- it's impressive, of course, but is there a risk in your view that you are perhaps under investing in the store experiencing staffing and so on? Or how should we view the drivers to this impressive cost control?

Well, that's an interesting question, and we are not seeing that we are sort of compromising on the real storage experience so far. Of course, individual examples where no problem as well. But actually, we run sort of clear efficiency initiatives we call them, projects to improve processes in the business not to be fewer people be it fewer hours to meet the customer, but make the other efforts, for example, easier for our colleagues with digital inventory scanning and more automatic processes and things like that. So also work really hard on all other indirect costs that impact us and try to always tender and negotiate and find new ways to address those. So we have actually quite on the opposite, investing quite a lot in improving the store experience with the Store 3.0 concept, of course, but also with the staff education and the training programs, et cetera, and we have seen -- we're pleased to see quite good development for 3 years now on metrics like customer service, quality perception, value for money, et cetera. So we are -- it's a good thing to keep an eye on, but we are currently not at all concerned, but that would be an issue for us.

Right. And then finally, on your strong cash flow generation, and you have still contained debt levels here, you lifted the dividend nearly 50%, and you have then, of course, executed the share buyback program. How should we view the coming year? Should we expect more of the same?

Could you please specify your question, Magnus?

Yes. So you've had a strong cash flow generation, and you still remain at contained debt levels if we compare to your guidance on gearing. And now you lifted the dividend or the Board suggested a lift in dividend of nearly 50%. And also you, of course, in Q2, Q4 executed your share buyback program. How should we view the decision on distribution going forward? Have you -- are we at the new dividend level long term in your opinion? And then also in terms of share buybacks, do you think we should expect the new mandate to be requested at the AGM?

Okay. Thank you very much for clarification. I think to answer that also in a couple of points. I think, first of all, yes, there is a big increase in dividend versus last year. And I think -- that is meant from the Board as a signal that the company is performing at a new level and with the continued really strong balance sheet and has the capacity to also set dividends at a new level. So I think you read that in the right way, Magnus. And then I think secondly, we are very cash-generative company, and we are really so in the last 2 years that performance has improved, but have actually been so for quite some time. And I think the Board has now -- and it allowed us to -- if we look back on the last year, for example, both invest a lot in organic growth and do acquisitions and pay dividends. And on top of that, do the buyback program. So I think the Board been there's no official decision. I would be surprised if the Board did not ask the AGM for a continued mandate or a renewed mandate to do buybacks after the AGM. But I think the board -- the segment also be seen that the Board is active with the capital allocation and try to find the best news of the strong balance sheet that we have.

The next question comes from the line of Carl Deijenberg from Carnegie.

So first, my first question is a bit of a follow-up here from Magnus on the timber prices. I'm just looking here -- we're trying to understand ahead of the peak season in Q2 and in Q3, what is the sort of lag from ordering to inventory? Are you ordering here now at these prices now for delivering Q2? Or what does that cycle sort of normally look like just to understand the sort of pricing lag to your inventory?

Yes. We're happy to answer that, Magnus, it gets slightly detailed to try to be the right level, but feel free to ask follow-up questions. So I think what you need to consider are sort of 2 different effects. The one -- the first one is the timing of the different price changes, both sort of into us and out to the consumer. And as you are -- I'm sure you probably remember, we were fortunate this year that consumer prices increased early on in Q2 before sort of all the inventory was built up with the new prices. So we benefited from that in Q2 quite a lot. As Helena said, in Q3, also quite a bit and now it's slightly the opposite in Q4. And despite that, of course, we deliver a good gross margin. But I think the second factor is I would think you're after is the sort of inventory turns. And this is, as we are a seasonal company and particularly timber is a seasonal category, it really varies throughout the year. So during these low season quarters in Q4 and Q1, there is a very slow inventory turnover. And we, of course, don't build it up much because there's not a big need for it. But during Q2 and Q3, there's a very fast spin those on that stock. And then any changes that happens to the pricing fairly quickly, sort of rolls through the P&L if that makes sense. So I warned you that it would be a slightly detailed answer, but I hope it helps. And if not, feel free to follow-up.

No, I think that's very clear. And I mean, following up on that topic and trying to understand the sort of positive mix effect seen in 2021. I mean the gross margin here year-on-year full year '21 is up by, I think, 120 bps or something compared with 2020. And I mean how much do you attribute to that to sort of the pricing effects and vice versa sustainable effects just to understand sort of the gross margin assumptions going into 2022, all is equal?

Yes. And then I think I'll put 3 comments to that. I think you're right in spotting it. And then firstly, we've built on a really nice gross margin development all the way back since 2019. So part of that is scale, part of that is product mix, as we talked about before, as the biggest 2 drivers and that has been a continuation. So -- and that is not sort of finished that journey, hopefully, as we continue to get bigger and continue to operate stores with attractive margin categories, et cetera. So that's point one. And then point to specifically in '21, you're right, it was a sort of front load and pricing effect in Q2 and Q3, and we estimated it to about 150 basis points in Q2. And I think we were at 50 or 100, I can't remember 50 probably in Q3. So I mean, for a full year basis, I guess that's around what 50, 70 points, maybe something like that. We can come back to you with a more firm estimate, but there is a bit of benefit, so to speak, specifically in '21, which makes the previous nice trend look even a bit better here in Q4 and then -- sorry, in '21. And then thirdly, Magnus, I'd just like to add that the most recent acquisition we've done the Right Price Tiles -- sorry, Carl, is also a higher gross margin business, which also helps us going forward. And hopefully, when we introduce those products also into a wider Byggmax network.

Perfect. That's very clear. And my final question is on store expansion here going into 2022. You were talking about at least 15 new stores. And you're also talking about 2 new concepts. Could you elaborate a bit on these new concepts? And maybe explain a bit here what you see on store expansion by quarter here going 2022? Is that going to be front-end loaded or back-end loaded? Or is it going to be fairly evenly distributed between the quarters? Or if you could just say something about that would be very helpful.

Absolutely. I'll take the 2 questions point by point. On the new format, it is to be fair, things that we have sort of commented on before that we had in the pipeline, but now we are term plans for launch. So you may be aware of the ideas previously. But the first one is that we would like to become even closer to our customers. And we today open with sorry, with quite big stores, as you're aware, with the big outdoor areas. We take 8,000, 10,000 square meters with our biggest format. And we would like to be in retail areas, in retail parks, as is called [indiscernible] in Swedish. So we have developed a new format where we can fit all of the large-format assortment and the experience, including driving into a 3500, 4000 square meter box all indoors and be in retail parks, which we think is a very interesting and exciting opportunity to come even closer to sort of retail trade and consumers' homes. So that's the first one, and that will open during summer. And then the second one is based on our acquisition of, Right Price Tiles, which is a very well-performing business, and we're happy with it, but it's only in Norway. And we would like to be in all of the Nordics and we are focused on building out the Byggmax brand, particularly. So we will introduce a hopefully slightly improved version of that under a Byggmax brand in Sweden during H2, so those are the 2 new formats. And then regarding timing, we are happy to get back to you with more details. It would be fairly even between first half year and second half year, there will be -- cannot remember now it's 1 or 2 new stores in Q1, but primarily otherwise in Q2 in the first half year. And Q3 and Q4 to the best of my memory is fairly even between them. So it's not like a major spike in any quarter that I can remember right now, except that it's a bit slower in Q1 because we plan the openings to be ready for high season, which typically is start of Q2.

[Operator Instructions] We have another question from the line of Anna Danfors from DNB.

Yes. Congratulations to your great 2021. I just want to follow up on the last question regarding new stores and 15 new stores is a substantial one compared to what you've done before a couple of years ago and so on. Is it possible to actually see how much revenues into full force that would actually add to your top line?

Yes. We can do that. And we also did provide some further details at our Capital Markets Day in March, if you would like to look at that. But we can say a bit like this. We operate 3 different store formats. They, of course, have different cashment areas and different sales per store on average. But if we assume sort of an average mix of that 16 new stores for last year, we could look at the average sales per store of Byggmax now. So -- and then the ramp-up is typically a 3-year ramp-up where we see a clearly slower sales in year 1 also because we don't open January 1 and they're very close to full ramp-up for sales maturity in year 2 and then the full sales maturity at year 3. So I think you can pretty much take sales per store for Byggmax segment, divided by a number of stores and multiply it by 15, and then you have a ramp-up factor, which is slower in year 1 and close to full maturity in year 2.

Well, that's clearly everything. And the other one is -- do you see any kind of consolidation going on right now? Or is it just that you continue to grow your business organically here?

Well, we have started to -- I think there are 2 points to that. I think if we look around us, I think we did see quite a lot of consolidation before the pandemic on the B2B side, which we are, of course, more B2C focused, so that may pick up again, who knows, but it's not really our target, but I guess within our industry, so it's interesting to observe, see what the impact may be. And then secondly, of course, we have been a bit more active now on the M&A side. We have a plan that we like, which is organic to grow into both new -- more of the geographies we are in, but also new categories. And we have realized that there are quicker ways to get there by acquiring similar companies to us. It is a little bit of an effort to find them because we are focused on DIY, B2C and low price. But we have been active in that in 2021, and we are looking also now at potential further add-on acquisitions of about reasonable same size going forward.

Okay. And the last one for me is everyone talking about higher prices and the go to raise prices. How do you think about that?

We have a very simple pricing strategy, and it's -- we are a price follower. We -- it's really important to our sort of brand and core customer offer that we are the lowest price provider on the market. So it's very simple to execute. We look at everybody else's prices, and we put ourselves at the same or just below that level. So for us, it's more sort of following the industry and the industry have shown for all the years that I've been here at least that sort of input prices have been realized in output prices. Sometimes a little bit ahead of time, like in last year in timber, sometimes it's taken a quarter or 2 on occasion, maybe 3, but the industry has passed on in raw material prices to consumers basically. And we don't see a change in that. We see that continuing to happen also now in Q4 and start of 2022, which we mentioned.

And the next question comes from the line of Julian Betta from Pascal Advisors.

Two quick questions for me, if I may. The first one, in bouncing back on the last discussion around the new store contribution. Is it -- I mean I made the back of the head calculation, is it fair that between the full year consolidation of Right Price Tiles plus new stores and the doors opened last year that will be at close to maturity. It gives me around 5% top line growth -- ground let's put it this way. Is that wide? Or you don't want to comment on that?

Julian, you're breaking up a little bit, but if I understand your question right, you're asking about new stores and acquisitions. And for the full year, we had an impact of 3 percentage points from new stores and just over 4% from the acquisition. But of course, the last acquisition, the bigger one came at the end of August. So it will impact at a higher level on a full year basis.

That's my point is for 2022, would you agree that it should be lower than '21, but not far in terms of impact of new stores plus M&A?

I don't see new stores being lower if we manage to get the 15 stores up in good time. In M&A, it's for the already acquired business, it's just a matter of sort of mapping it out because we will have already the Danish business as of January last year already this year. But on the other hand, we only have about, I don't know, SEK 100 million out of the sort of SEK 300 million revenue from the Right Price Tiles. So I haven't done the math in my head, to be honest. But fairly simple to do.

And the other question I would have is, are you actively looking for M&A? Or you are focusing on integrating ripe for start first?

Well, I think I'll answer it like this. #1 priority for us is our organic growth plan because we really like, it gives a scale effect and we've done the same thing for several years, and we know it gives effect. But number two, yes, there are interesting M&A candidates and we will be active and accept something that is a good fit with us. And again, it's not the long list, given that we would like to find something that fits with Byggmax. But we will participate in those growth initiatives also.

And the next question comes from the line of Daniel Schmidt from Danske Bank.

Just a short question from me. The sort of the normalization of the market in the Nordics when it comes to DIY in Q4 that you said was minus 6% to minus 8%. Do you think is that a relevant correction for 2022, you think for looking at the full year '22 versus '21?

Yes, I think it's good question. Yes. I think it's good like this, we are at the 10% level about 2019 in Q4. You're right on the numbers. But just looking at it on a 2-year basis, I think makes logic easier. So we were almost a 10% increase versus '19, and that was the same level in Q3. So for the full second half year, we have 2 quarters in a row in the market lower than the pandemic level, but 8% or almost 10% higher than '19. So that is a good, I think, starting point or starting assumptions when we look ahead.

At least for the first half then, if you look at 2022 and then, of course, maybe easier comps towards the end. And in that scenario, sort of given that you've been taking a lot of market share over the past 2 years, and you're sort of pushing the fact that discount profiles become sort of even more evident. Do you feel that it's any possibility for you guys to have a like-for-like that's close to 0? Or is that sort of too optimistic?

Well, I think you're right in your first comment that the comps are really, I don't want to say strange, but they are at a very unusual pattern given every situation. So for the first half year, -- of course, Q1 is very tough comps at on a 2-year basis. Q2 is extreme. But the second half of the year is fully doable to beat. So I think we will look at it from that perspective and hopefully can demonstrate that if you look at this business now, with a little bit to our view, both the market and particularly, hopefully, ourselves, we will be at a completely new level.

And we have one last question from Dennis Peterson who's a private investor.

Can you please tell me something about the distribution of the sales in other Nordics between the countries?

Yes. Helena may be has numbers to share. I think we will have for the full year once the annual report is out. But the second biggest market for us is Norway, clearly, outside Sweden. And then Finland a little bit bigger than Denmark. But both of those are fairly small.

Okay. So do you have any approximately percentage for the 3?

Yes, we do. Maybe Helena, do you have those numbers from the top of your head. We had in -- sorry. Not in percent, but I think in terms of where do you have those in -- Yes. For the full quarter, we had revenues in Sweden of 900 out of the 1,300 in the quarter and the rest of Nordics, 400 compared to over 1,300. And then yes, that's it. Obviously, we're having really good growth outside Sweden, given also the acquisitions and the turnaround we've done in those businesses that are now developing very nicely.

I was primarily wondering about the other 3 countries. But okay, I calculated too in the high 20% or something in sales up from about below 20s going into 2021. So...

You're 30% now. From a lower [indiscernible]. Correct.

Yes. So do you do any sort of hedging on the currency? Or do -- when you purchase materials? Is it in SEK or is it in local currency?

Our purchase, this is a combination of mainly SEK it, but we do have euro, NOK and some other smaller currencies. And to some extent, we do hedge it, but we also have sales corresponding to some of the other currencies.

Okay. And do you expect the growth to come from mainly Sweden or the other markets going forward? I understand that the increase during this year. perhaps mostly comes from the acquisitions. But going forward, do you expect the growth from mainly Sweden or the other countries?

Well, in the very short term, we are really strong in Sweden. And as we are rolling out a lot of proven initiatives they have, of course, a good impact in the home country. But we have for the last, as you said, 2 years really grown our presence outside Sweden, and we -- it's important to remember that just 2, 3 years ago, we had a really good Swedish profitable business and a good Norwegian business, that we were unprofitable in Finland, we were not in Denmark. Now we are in 4 countries with profitable businesses in all, and we are able to grow profitably in all. So over the next just few years, we clearly see a good growth outside Sweden and to build up a bigger presence there.

Okay. And I was a bit late into this call. Have you said anything about the start of Q1? Or can you say anything about that?

No, we have not, but we can share a bit on that, and we could say that, of course, we also continue to face tough comparables, but we are happy with the start of 2022. We are at the similar or even slightly better trend than when we end the quarter for quarter 2021 as we enter into January, it's obviously low sales week for us, but still a positive indication. And I guess, the other thing we could be very transparent about is that we have a business in Skånska Byggvaror, which operates more with the sort of customer placing orders and then deliveries at the customers so desired times. So we had a record, super record order intake last year in Skånska Byggvaror for deliveries during spring. And this Q4 in '21, we almost reached the same high level in order intake. So that also, of course, gives us a bit of positive confidence for a continued strong market here in power performance in 2022.

And as there are no further questions, I will hand it back to the speakers.

Thank you, everybody, for joining this call. Have a great day and look forward to touching base again at the Q1 call.

This concludes our conference call. Thank you all for attending. You may now disconnect your lines.