In This Article:
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Revenue: EUR28.4 million, reflecting a 31% decline from the previous year.
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Net Profit: Declined from EUR10 million a year ago to EUR7 million.
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EBIT Margin: 6.2%, maintained despite declining sales due to higher gross margins and cost measures.
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Gross Margin: Improved due to pricing actions and sales mix changes.
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Leverage: Elevated at 3.3x, above the target range.
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Cost Savings: Achieved over EUR2 million in annual fixed cost savings.
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Sales Decline: Rolling 12-month sales declined from over EUR170 million to EUR130 million.
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Working Capital: Trade working capital at EUR28.5 million, with a target to reduce to EUR25 million.
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Operational EPS: 10 cents per share.
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Return on Equity: 7.8% on a rolling basis.
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Liquidity: Short-term liquidity of EUR13.8 million.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Boreo Oyj (FRA:YKK) has managed to maintain a decent profitability margin of around 6% despite a significant 30% decline in sales compared to the previous year.
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The company has successfully implemented cost-saving measures, achieving over EUR2 million in annual fixed cost savings, surpassing their initial target of EUR1 million.
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Order books have improved compared to Q2 2024, indicating a stronger short-term outlook and potential for future revenue growth.
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The company's acquisitions over the past four years have yielded a 15% return, demonstrating effective investment strategies.
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Boreo Oyj (FRA:YKK) has maintained its market share in all three of its markets, positioning itself well for profit generation when market conditions improve.
Negative Points
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Boreo Oyj (FRA:YKK) is facing a challenging market environment, with a significant decline in sales, particularly in the Finnish market, which heavily impacts their performance.
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The company's profits have decreased from EUR10 million a year ago to EUR7 million, with returns dropping from 13%-12% to 8%.
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Leverage is elevated at 3.3x, exceeding the company's target range, indicating financial strain.
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The Finnish economy's poor performance is negatively affecting Boreo Oyj (FRA:YKK), as a significant portion of their portfolio is focused on this market.
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The company's machinery and construction-related businesses have experienced a tough year, with postponed orders impacting revenue expectations.
Q & A Highlights
Q: Given your comments on the order books, should we expect the revenue to have bottomed at Q3 despite the postponed deliveries in Putzmeister? A: Kari Nerg, CEO: Yes, the order book is generally stronger now, supporting our short-term outlook. We expect to operate above the current revenue levels going forward.