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Net Sales: SEK 3.5 billion, a decline of 17% from last quarter's SEK 4.2 billion.
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Gross Margin: Increased to 4.1% from 3.8% last year.
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EBIT: SEK 34.3 million, down from SEK 44.7 million last year.
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Financial Net: SEK 12.9 million, impacted by currency effects.
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Order Intake: SEK 4.2 billion, lower due to phase-out of certain client contracts.
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Revenue in Nordics: Approximately 18% lower than the previous year.
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Revenue in Poland and Slovakia: Increased by approximately 5%.
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Order Intake in Denmark: Increased by 6% compared to the same quarter last year.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ework Group AB (LTS:0MCB) reported an increase in gross margin to 4.1% from 3.8% last year, driven by growth in add-on services.
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The company experienced strong growth in Denmark and Poland, with Poland benefiting from increased nearshoring demand.
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Ework Group AB expanded its operations into Belgium, aligning with its strategy for European expansion.
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The company launched a new internal digital platform aimed at increasing scalability and long-term efficiency, with AI and automation playing key roles.
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Ework Group AB secured several new frame agreements with both new and existing clients, indicating renewed confidence in their services.
Negative Points
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Net sales declined by 17% to SEK3.5 billion, primarily due to the phase-out of unprofitable client contracts and fewer workdays.
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The company faced challenges in Sweden and Norway, with lower volumes impacting overall results.
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Operating profit decreased to SEK34.3 million from SEK44.7 million last year, affected by lower business volumes.
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The public sector consulting and telecom industries remained restrained, contributing to a decline in these segments.
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Ework Group AB's financial net was negatively impacted by currency effects, particularly related to an inter-company loan to the Polish business.
Q & A Highlights
Q: Have you extended the scope of phasing out unprofitable contracts, or does it mainly reflect the contracts announced in early 2024? A: We have mainly phased out one big contract as communicated in 2024. The current volume drop is related to this, but we continuously assess contracts to ensure profitability. - Karin Schreil, CEO
Q: Is it fair to expect gradually improved growth in gross profit given the uncertain market and phased-out contracts? A: Yes, we focus on improving gross margins by discontinuing nonprofitable agreements and adding more high-margin services. However, market uncertainty remains a challenge. - Karin Schreil, CEO and Johanna Eriksson, CFO