In This Article:
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Sales Growth: 12% increase in the quarter.
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Organic Growth: 2% in the quarter.
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EBITDA Growth: 13% increase in the quarter.
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EPS Growth: 2% increase in the quarter.
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Net Profit: SEK 728 million, up 2% compared to last year.
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Cash Flow: SEK 354 million operational cash flow in Q2.
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Net Debt: Increased by EUR 1.7 billion compared to Q1.
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US Sales Growth: 34% increase in the quarter.
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Record Margins: Achieved record margins in the quarter.
Release Date: July 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Beijer Ref AB (STU:BRZ0) reported a strong Q2 with a 12% increase in sales and a 13% growth in EBITDA, marking record margins for the company.
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The company achieved positive cash flow in Q2, which is typically not expected until Q3 or Q4, indicating effective inventory management.
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Beijer Ref AB (STU:BRZ0) successfully closed an acquisition in the US and has a pending acquisition in Hungary, which are expected to enhance its market presence.
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The company's private label brands, Sinclair, Inventor, and Freddox, experienced strong double-digit growth, contributing positively to organic growth.
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The US market showed a remarkable 34% growth, supported by strategic acquisitions and favorable weather conditions, with plans to expand further by opening new branches.
Negative Points
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Despite the positive results, the net profit increased by only 2% compared to last year, partly due to higher net financial expenses driven by increased debt and interest rates.
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The EMEA region experienced slower growth in key markets like France, UK, and the Netherlands due to unfavorable weather conditions.
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The company's effective tax rate stood at 24%, which could impact net profitability.
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There is uncertainty regarding the full impact of margin initiatives in the APAC region, with expectations to reach a double-digit margin business by 2025.
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The transition to new A2L products in the US market is expected to have a limited impact in 2024, with more significant effects anticipated in 2025.
Q & A Highlights
Q: Can you elaborate on the APAC margin improvement and the impact of pricing initiatives? A: The APAC margin improvement is due to internal initiatives and synergies from acquisitions, which initially diluted margins but are now showing positive effects. The goal is to reach a 10% EBITA margin by 2025, though it may not be a straight line to that target. (Christopher Norbye, CEO)
Q: Could you provide more details on the data center order and its significance? A: The data center order is a breakthrough for us, utilizing green technology and natural refrigerants. It's a significant order, but more details will be disclosed in Q3. This order represents a promising opportunity for future projects. (Christopher Norbye, CEO)