In This Article:
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Revenue: SEK6,575 million for Q3 2024.
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Organic Growth: -3% for the quarter.
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Service Growth: 8% increase.
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Order Intake: Decreased by 12%.
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Order Backlog: Remains high, except for a decrease in Denmark.
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EBITA Margin: 4.5%, adjusted to 4.8% after one-off costs.
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One-off Costs: SEK19 million, impacting margin by 0.3%.
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Cash Flow: SEK193 million, improved from minus SEK212 million last year.
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Cash Conversion: 134%.
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Net Debt/EBITA Ratio: 1.2.
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Sweden Revenue: SEK3 billion for the quarter, SEK10.3 billion year-to-date.
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Norway Revenue: SEK1.3 billion for the quarter, with a 5% growth in local currency.
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Denmark Revenue: SEK1.6 billion for the quarter, with a -4% growth.
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Finland Revenue: SEK646 million for the quarter, 20% growth.
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Acquisitions: Nine acquisitions adding around SEK0.5 billion in sales.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bravida Holding AB (LTS:0RBW) reported a strong cash flow improvement, with SEK193 million compared to a negative SEK212 million last year, marking an improvement of around SEK400 million.
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The company achieved a cash conversion rate of 134%, indicating efficient management of working capital.
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Service business grew by 8%, providing stability in challenging market conditions.
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Positive margin improvements were noted in Finland and Norway, with Norway's margin reaching 5.7% including the Thunestvedt acquisition.
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Bravida Holding AB (LTS:0RBW) has a strong acquisition pipeline and has completed nine acquisitions this year, adding approximately SEK0.5 billion in sales.
Negative Points
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Organic growth was negative at minus 3%, reflecting challenges in the market.
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Order intake decreased by 12%, attributed to strict project selection and soft market demands, particularly in Finland and southern Sweden.
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The EBITA margin decreased to 4.5% from 5.4% last year, affected by operational changes in Denmark and weak demand in southern Sweden.
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Restructuring costs amounted to SEK19 million for the quarter, impacting margins by approximately 0.3 percentage points.
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The order backlog decreased during the quarter, except in Denmark, indicating potential future revenue challenges.
Q & A Highlights
Q: Can you provide details on the branches affected in Southern Sweden and the rationale behind the decision to consolidate or close them? A: The market in Southern Sweden is more challenging compared to other regions. We are closing around five branches and 20 cost units due to their inability to achieve satisfactory margins even in favorable market conditions. The decision is based on maintaining our strategy of focusing on margin over volume. The sales from these units, approximately SEK250 million year-to-date, are currently loss-making.