In This Article:
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Revenue: Reported sales of approximately SEK 8 billion.
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Adjusted EBITA: SEK 783 million with a margin of 9.8%.
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Cash Conversion: 99% for the quarter.
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Leverage Ratio: Reduced to 2.6.
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Net Sales Decline: 4% decrease attributed to divestments.
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Organic Sales Growth: Positive 3% across all business areas.
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Adjusted EBIT Growth: 19% increase to SEK 597 million.
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Net Financial Items: SEK 242 million negative, with net interest costs at SEK 207 million.
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Profit Before Tax: Increased by 68% in Q3.
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Net Profit Increase: 31% growth.
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Adjusted Return on Equity: 4.3% for the 12-month period.
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EPS Growth: 35% increase to SEK 0.13.
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CapEx to Sales: 1.4% in the third quarter.
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Interest Bearing Net Debt: Reduced by SEK 255 million from Q2.
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Equity Ratio: Increased to 46% from 45% a year ago.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Storskogen Group AB (FRA:0VK) reported a positive organic sales growth of 3% across all business areas.
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The company achieved an adjusted EBITA margin of 9.8%, inching closer to their target of 10%.
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Cash conversion remains strong at 99%, exceeding the company's target.
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The company's leverage ratio improved slightly to 2.6, with no significant bond maturities until 2027.
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S&P affirmed Storskogen Group AB's credit rating at BB with an improved outlook from negative to stable.
Negative Points
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Net sales declined by 4% due to divestments and currency effects.
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Consumer demand remains subdued, impacting the trade business area.
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The construction market remains soft, affecting companies exposed to this sector.
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Global uncertainties pose potential delays in broader recovery, especially for consumer and construction markets.
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The return on equity and return on capital employed are lower compared to last year, despite slight sequential improvements.
Q & A Highlights
Q: Can you elaborate on the margin impact of the portfolio divestments announced during the summer? A: The divestments primarily impacted the business area services, contributing to a margin uplift of over a percentage point, approximately 1.3%. The impact was less visible in trade and industry. The divestments, along with operational improvements, contributed to the positive margin development.
Q: How should we interpret the stable order books in the industry segment? Are you seeing a slowdown in orders? A: The order books remain at healthy levels, though slightly slower in Q3 compared to Q2. We have not observed a significant slowdown in October or early November, but we are monitoring the situation closely.