In This Article:
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Total Revenue: Exceeded SEK 8.5 billion.
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Net Sales Growth: Increased by 16%, with acquisitions contributing 17% and organic growth at 1%.
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EBITA: Increased by 16%, with a stable margin of 17.8%.
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Profit After Financial Items: Increased by 14%.
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Cash Flow: Not entirely satisfactory, despite being at a good level.
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Acquisitions: Completed two acquisitions with total annual revenue of SEK 280 million; rolling 12-month acquisition revenue at SEK 1.1 billion.
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First Half-Year Net Revenue Growth: Increased by 13%, primarily due to acquisitions.
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First Half-Year EBITA Margin: 17.4%.
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Return on Equity: 28%.
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Equity Ratio: 34%.
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Earnings Per Share: Increased to SEK 4.41 from SEK 4.25.
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Electrify Division Revenue Growth: 26%, primarily from acquisitions.
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Niche Products Division EBITA Margin: Above 22% on a rolling 12-month basis.
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International Division EBITA Margin: 17.6%.
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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Lagercrantz Group AB (FRA:LG72) reported a solid quarter with a 16% increase in net sales, primarily driven by acquisitions.
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The EBITA margin remained stable at a strong 17.8%, reflecting efficient operational management.
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The company completed two acquisitions in July, contributing to a rolling 12-month revenue increase of over SEK 1.1 billion.
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The niche products division showed impressive growth with a 21% increase in revenues and an all-time high EBITA margin of 22.9%.
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Lagercrantz Group AB (FRA:LG72) continues to expand internationally, with significant growth in the UK market, now accounting for 7% of total revenue.
Negative Points
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Organic growth was modest at 1%, indicating reliance on acquisitions for revenue increases.
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The construction sector remains challenging, impacting the control and tech divisions negatively.
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Cash flow performance did not meet the company's high ambitions, despite being at a good level.
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The market recovery has been slower than expected, with some growth anticipated to be delayed into 2025.
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The company faces higher tax rates due to expansion into regions with higher tax environments, such as the UK and the US.
Q & A Highlights
Q: With the increased M&A pace and high cost inflation, are we seeing an increased positive price component in the group's growth? A: Jorgen Wigh, President & CEO, explained that while there was significant price inflation during the early stages of the Ukraine conflict, the current price component is not as significant. The company is now seeing more normal levels of price increases, aligning with decreasing inflation rates.