In This Article:
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Order Intake Growth: 4% total growth, 2% organic growth.
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Net Sales Growth: 2% total growth, flat organically.
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EBITDA Margin: 14.8%, slightly lower than 15.2% last year.
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Gross Margin: Slight improvement excluding one-offs.
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Earnings Per Share (EPS): SEK1.92, a 33% increase from last year.
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Cash Flow: Approximately SEK1 billion for the quarter.
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Net Debt to EBITDA Ratio: Improved to 1.6 times from 1.7 times last year.
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Acquisitions: 13 acquisitions in 2024, contributing over SEK1.2 billion in annual sales.
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Return on Capital Employed: 90%, slightly lower than target level.
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Tax Rate: Around 20%, temporarily low due to one-offs.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Indutrade AB (IDDWF) reported a stable order intake with a total growth of 4% and 2% organically.
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The company completed 13 acquisitions in 2024, contributing to a strong acquisition pipeline.
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EBITDA margin remained high at 14.8%, despite a slight decline from the previous year.
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Strong cash flow was maintained, with SEK1 billion generated in the quarter.
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The company has a solid financial position with a net debt to EBITDA ratio of 1.6 times, improved from last year.
Negative Points
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Book to bill ratio was below one, indicating potential future sales challenges.
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EBITDA decreased by 1% compared to last year, driven by soft organic sales development and higher expenses.
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The business climate in infrastructure, construction, and parts of the engineering segments remained dampened.
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Organic sales development was flat, and the company faced slightly higher expenses impacting profitability.
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The decline in the UK and Ireland sales was attributed to weaker performance in the construction segment.
Q & A Highlights
Q: Can you explain the inventory write-down and whether it will continue in the coming quarters? A: The inventory write-down is linked to our reorganization and the fresh perspectives of new segment leaders. It is a one-time situation due to inventory obsolescence and should not continue in future quarters. - Bo Annvik, President, CEO
Q: What is causing the organic drop in the Technology and System Solutions segment, and how are cost reductions being addressed? A: The drop is due to a challenging business climate affecting some companies within the segment. Cost reductions are being handled individually by companies, and there are no specific numbers for the entire business area. - Bo Annvik, President, CEO
Q: How has the order intake varied during the quarter, and what is the outlook for the next quarter? A: The order intake has been stable throughout the quarter without significant variations. The industrial engineering area, particularly in Germany, remains challenging, but no major sequential differences are expected between Q3 and Q4. - Bo Annvik, President, CEO