In This Article:
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Order Intake Q3 2024: SEK 1.873 billion, representing an organic decline of 5.1%.
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Net Sales Q3 2024: SEK 1.919 billion, showing an organic decline of 5.2%.
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EBIT Q3 2024: SEK 181 million with a 9.4% EBIT margin.
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Earnings Per Share (EPS) Q3 2024: 0.58 Swedish crowns per share.
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Year-to-Date Order Intake: SEK 6.106 billion, an organic decline of 2.5% compared to 2023.
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Year-to-Date Net Sales: SEK 6.266 billion, an organic decline of 2.2% compared to 2023.
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Operating Profit Year-to-Date: SEK 598 million, with an operating margin of 9.5%.
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Earnings Per Share (EPS) Year-to-Date: 1.99 Swedish crowns per share.
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Premium Business Area Order Intake Q3 2024: Organic growth of 6.6%.
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Premium Business Area Operating Margin Q3 2024: 13.7%, highest this year.
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Net Debt: SEK 2.46 billion, adjusted to SEK 1.7 billion for IFRS 16 effects.
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Net Debt/EBITDA Ratio: Less than 2.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fagerhult Group AB (FRA:2F0) has initiated cost reduction measures, which are expected to improve profitability in the coming periods.
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The company has launched a cloud-based service offering in smart lighting, which is expected to enhance customer engagement and sustainability.
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The fluorescent ban in Europe is leading to quicker-than-expected inventory depletion, creating opportunities for renovation projects.
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Fagerhult Group AB (FRA:2F0) has a strong cash flow, with 10 successive quarters of positive cash flow generation.
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The company is seeing positive signs from the fluorescent ban, which is expected to drive renovation projects and support future growth.
Negative Points
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The third quarter results did not meet the company's expectations due to softer market conditions.
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There is a noticeable slowdown in decision-making processes, particularly affecting the high-end segment of the lighting industry.
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The UK market has been particularly impacted by governmental elections and lower public sector investment, affecting sales.
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The company has experienced an organic decline in order intake and net sales compared to the previous year.
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Fagerhult Group AB (FRA:2F0) has exited the horticulture market, which involved restructuring and headcount reductions.
Q & A Highlights
Q: Can you clarify the expected payback period for the restructuring costs and the monthly cost reductions? A: Michael Bruer, Head of Business Area Professional, explained that the restructuring programs across Vaco, LTs, and R Light will have a payback period starting in November and completing within eight months. The group is also achieving SEK6 million in monthly cost savings from targeted areas, separate from the restructuring efforts.