In This Article:
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Total Sales: EUR 156.6 million, a growth of 3.4% year over year and 10.3% sequentially.
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Gross Margin: 47% supported by high sales volume.
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EBIT: EUR 39.9 million with a margin of 25.5% of sales.
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Investments: Decreased to EUR 5.9 million or 3.8% of sales.
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Inventory Reduction: Decreased by almost EUR 7 million during the quarter.
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Adjusted Free Cash Flow: EUR 45.5 million due to strong operating cash flow and low CapEx.
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Sales Guidance for 2024: Between EUR 580 to 630 million, expecting full-year sales in the lower range.
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Operating EBIT Margin Forecast for 2024: 25% plus or minus two points.
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CapEx Forecast for 2024: Around 12% plus or minus 2% points of sales.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elmos Semiconductor SE (XTER:ELG) reported a solid growth of 3.4% year over year and a 10.3% sequential increase in sales for Q3 2024, reaching EUR 156.6 million.
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The company achieved a strong EBIT margin of 25.5% of sales, supported by lower operating expenses.
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Elmos Semiconductor SE successfully initiated strategic initiatives, including a new China strategy and an overall equipment efficiency program, enhancing operational efficiency.
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The company maintained a resilient business performance despite challenging market conditions, with a positive outlook for future growth in the automotive semiconductor sector.
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Elmos Semiconductor SE confirmed its original sales guidance for fiscal year 2024, indicating confidence in its ability to navigate market challenges.
Negative Points
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The global automotive market faces uncertainties, including slower progress in e-mobility and weaker economic expectations, impacting customer orders and inventory adjustments.
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Inventory levels remain higher than desired, although they decreased by EUR 7 million during the quarter, indicating ongoing challenges in inventory management.
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The forecast for the automotive semiconductor market has been revised to show only slight growth of 1% year over year, reflecting weaker demand and ongoing inventory destocking.
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Elmos Semiconductor SE expects Q4 sales to not quite reach the level of the previous year due to ongoing destocking and short-term order behavior from customers.
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Visibility for near-term development remains low, with customers placing orders at shorter notice, creating challenges in forecasting and planning.
Q & A Highlights
Q: Can you explain how Elmos Semiconductor SE plans to achieve EUR1 billion in sales as part of its midterm targets? A: Arne Schneider, CEO, explained that the target is based on design wins and growth potential in different segments. The company has been considering this goal for some time, assessing trends and opportunities across various markets.