In This Article:
-
Organic Growth: Negative 2% in Q1, impacted by ended contracts and lower variable volume.
-
EBITA Margin: Improved to 4.7% in Q1 from 3.3% in the previous quarter.
-
Cash Conversion: Ended at 81%, up from 57% in the previous quarter.
-
Net Sales: SEK3.052 billion, a 2% decrease compared to last year.
-
Adjusted EBITA: SEK144 million, resulting in a 4.7% EBITA margin for the quarter.
-
Net Income: SEK50 million; adjusted net income is SEK64 million.
-
Full-Year Net Sales: Approximately SEK12.4 billion.
-
Full-Year Organic Growth: Negative 1.4%.
-
Full-Year Adjusted EBITA: SEK530 million, with a 4.3% EBITA margin.
-
Full-Year Adjusted Net Income: SEK176 million.
-
Working Capital Reduction: Reduced by SEK200 million in Q1.
-
Leverage: Decreased to 2.8, driven by improved cash flow.
-
Sweden Organic Growth: Negative 1.6% in Q1.
-
Denmark Organic Growth: Negative 5% in Q1.
-
Norway Organic Growth: 5% in Q1.
-
Finland Organic Growth: Negative 9% in Q1.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Coor Service Management Holding AB (FRA:COE) demonstrated a significant improvement in EBITA margin for Q1, rising to 4.7% from 3.3% in the previous quarter.
-
The company successfully renewed a major contract with Equinor in Norway, providing a stable base for future business.
-
Cash conversion improved significantly to 81% from 57% in the previous quarter, driven by reductions in working capital.
-
The implementation of a new organizational structure is expected to generate full-year savings of SEK120 million, with positive reception from staff.
-
Coor Service Management Holding AB (FRA:COE) maintained strong customer relationships and a stable market position, unaffected by international market turbulence.
Negative Points
-
Organic growth was negative 2% in the first quarter, attributed to ended contracts and lower variable volumes.
-
Net sales decreased by 2% compared to the previous year, with organic growth at negative 1.8%.
-
The company faced redundancy costs of SEK20 million due to organizational changes.
-
High personnel costs continue to negatively impact parts of the operations, despite some improvements.
-
The Finnish market experienced a significant decline with organic growth at negative 9% due to ended contracts and lower variable volumes.
Q & A Highlights
Q: Could you provide an update on how the new organizational structure is performing and when you expect to reach your margin target? A: The new organizational structure has been well received, focusing on administrative and overhead costs at the group headquarters. This has rejuvenated energy in the central team without affecting customer delivery. As for the margin target, I need more time to assess and will provide a detailed plan later.