In This Article:
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Sales Volume: Increased by 7% to 123,000 tonnes compared to 115,000 tonnes last year.
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Operating Profit: Stable at SEK420 million, roughly in line with last year.
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EBIT: SEK420 million in Q3, slightly up year-on-year when adjusted for one-off energy cost compensation.
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Net Sales: Increased by 3% to SEK5.75 billion.
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Earnings Per Share (EPS): SEK2.67.
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Return on Capital Employed: Increased to 11.9%, up 0.7 percentage points year-on-year.
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Net Debt: Reduced by SEK200 million to SEK2.8 billion.
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Net Debt-to-EBITDA Ratio: Reduced to 1.2 times.
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Cash Flow from Operations: Positive SEK474 million in Q3.
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Granges Americas Sales Volume Growth: 3% year-on-year.
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Granges Eurasia Sales Volume Growth: 10% year-on-year.
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Adjusted Operating Profit for Granges Eurasia: SEK165 million, an increase of SEK65 million year-on-year.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Granges AB (FRA:9GR) reported a 7% increase in sales volume, reaching 123,000 tonnes, despite weak automotive demand.
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The company achieved stable operating profit at SEK420 million, largely offsetting price pressure and wage inflation through productivity improvements and effective metals management.
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Granges AB (FRA:9GR) demonstrated significant sustainability progress, with a 33% reduction in carbon emissions intensity compared to 2017 and record aluminum recycling levels.
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The company announced a strategic partnership with Shandong Innovation Group, aimed at strengthening competitiveness and market share growth in Asia.
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Granges Eurasia showed strong growth, with a 10% year-on-year increase in sales volume, driven by recovery in Europe and Asia.
Negative Points
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The automotive market remains weak, posing challenges for Granges AB (FRA:9GR) despite their efforts to offset this with market share gains.
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Sequentially, sales volume declined by 6%, reflecting a return to more normal seasonality, which also impacted operating profit.
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The EBIT per tonne decreased from SEK380 in Q3 last year to SEK340 this year, indicating some pressure on profitability.
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Depreciation increased by SEK8 million year-over-year due to completed expansion projects, impacting financial results.
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The company anticipates a potential increase in leverage in Q4 due to higher capital expenditure and dividend payments.
Q & A Highlights
Q: Can you elaborate on the weaker demand from automotive customers and whether you expect a downturn in those volumes? A: Joergen Rosengren, CEO: While there is noticeable weakness in the automotive sector, we continue to gain market share in an uncertain market. Automotive is important but not our only segment, and our 7% growth despite weak automotive demand shows our diversified customer base.