In This Article:
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Order Bookings: Declined by 1%, with 1% organic growth.
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Net Revenue: Increased slightly with 1% organic growth.
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Adjusted Operating Profit: SEK212 million, with a margin of 12.6%, down 0.8 percentage points from last year.
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Lesjofors Order Bookings: Decreased by 5%, with flat organic development.
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Lesjofors Net Revenue: Decreased by 3%, with 1% organic growth.
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Lesjofors Adjusted Operating Profit: SEK162 million, with an EBIT margin of 14%.
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Beijer Tech Order Bookings: Increased by 9%, with 1% organic growth.
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Beijer Tech Net Revenue: Grew by 10%, with 2% organic growth.
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Beijer Tech Operating Result: Increased to SEK58 million, with an operating margin over 11%.
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Adjusted EBITA: SEK230 million, SEK50 million lower than last year.
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Cash Flow from Operating Activities: SEK212 million, lower than last year.
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Net Debt-to-EBITDA: Debt leverage of 1.8.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Beijer Alma AB (LTS:0YG7) reported organic growth in the third quarter, indicating some stability in a weakened economy.
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The Nordics, Asia, and UK regions showed strong performance, contributing positively to the company's growth.
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Beijer Tech's Fluid Technology segment experienced significant growth, both organically and through acquisitions.
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The company successfully completed acquisitions of Clifford Springs and Clemco, supporting its growth strategy.
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Lesjofors launched door springs in the US, which positively impacted growth despite some initial one-off costs.
Negative Points
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Order bookings declined by 1%, and net revenues grew only slightly, reflecting modest growth numbers.
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The Chassis Springs business area experienced a slowdown, with net revenues decreasing by 8% due to tough comparables and reduced stock levels.
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Germany and Central Europe were identified as weaker markets, impacting overall performance.
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Adjusted operating profit margin decreased by 0.8 percentage points compared to the previous year.
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The company faces economic uncertainty, including high interest rates, which poses challenges for balancing growth investments and savings.
Q & A Highlights
Q: Can you provide insights into the profit development between the Industrial segment and Chassis Springs within Lesjofors? A: The Industrial segment performed better year over year compared to Chassis Springs. The slowdown in Chassis Springs, comparable effects from last year's energy support, and one-off costs from the US door springs launch impacted profits. Additionally, the weaker European, particularly German, economy affected results. - Henrik Perbeck, CEO