In This Article:
-
Net Sales: Decreased by 4.5%, with a 10% decline organically.
-
Adjusted EBITDA Margin: 7.7% for the quarter.
-
Order Backlog: Decreased by approximately 20% organically.
-
Working Capital Improvement: Improved by SEK39 million in the quarter.
-
Cash Conversion: Above target of 100% over the last four months.
-
Average Interest Rate: 6% for the nine-month period, compared to 4.6% last year.
-
Net Debt to Adjusted EBITDA: Just below 3.5% as of September.
-
Acquisitions: Acquired Brandon (SEK185 million revenue) and a smaller company with SEK30 million in sales.
-
Clear Line Acquisition: Sales of approximately SEK50 million, with an adjusted EBITDA average of SEK18.4 million over the last three years.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Fasadgruppen Group AB (FRA:83A) reported a positive development in earnings compared to the first half of 2024.
-
Material prices, which constitute roughly one-third of the company's costs, have decreased, positively impacting organic growth.
-
The company completed two acquisitions in the quarter, including a significant acquisition of Clear Line, enhancing its market position.
-
Improved adjusted EBITDA margin of 7.7% during the quarter, with notable improvements in Norway and Denmark.
-
Strong cash conversion above the target of 100% over the last four months, indicating effective financial management.
Negative Points
-
Net sales decreased by 4.5%, with a significant 10% decline organically, primarily due to decreasing material prices.
-
The Swedish market experienced the largest decline, affecting overall performance.
-
Order backlog decreased by approximately 20% organically, indicating potential future revenue challenges.
-
Average interest rates increased to 6% from 4.6% in the same period last year, impacting financial costs.
-
The company faces a tough competitive situation, particularly in Sweden, which may hinder growth prospects.
Q & A Highlights
Q: Given the improvement in Q3 compared to Q2, do you believe the current EBITDA margin of 7.7% is stable going forward? A: Martin Jacobsson, CEO: We are not satisfied with the current margin and aim for over 10% in the long term. We believe we've seen the worst and expect improvements, though we remain cautious about market conditions.
Q: With a 21% organic decline in the order backlog, is it reasonable to expect organic sales growth in 2025? A: Martin Jacobsson, CEO: It depends on material prices, but we see it as plausible to achieve organic volume growth in 2025.