In This Article:
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Revenue: SEK 8.442 billion, flat compared to last year.
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Organic Sales Growth: 1% increase across all business areas.
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EBITA: SEK 1.464 billion, a 2% decline from the previous year.
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EBITA Margin: 17.3%, slightly down from last year.
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Items Affecting Comparability: SEK 73 million related to restructuring costs.
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Net Debt: SEK 5.381 billion, including liabilities related to earnouts.
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Cash Flow from Operations: SEK 1.422 billion, with positive working capital contribution.
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Return on Capital Employed: 12.3% on a rolling 12-month basis.
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Capex Guidance for 2024: SEK 1.7 billion.
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Earnings Per Share (EPS): SEK 3.78, down 10% excluding items affecting comparability.
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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Trelleborg AB (TBABF) managed to maintain a stable EBITA margin of 17.3% despite currency headwinds and a challenging market environment.
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The company successfully closed the acquisition of Baron Group, significantly enhancing its position in the medical business and expanding its geographical reach.
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Strong growth was observed in Asia, particularly in LNG and infrastructure projects, contributing positively to the overall performance.
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Trelleborg AB (TBABF) continues to focus on sustainability, achieving 87% renewable and fossil-free electricity usage.
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The company is actively investing in new factories and expanding its global footprint, with projects in Costa Rica, Vietnam, and India, positioning itself for future growth.
Negative Points
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Overall sales were flat compared to the previous year, with a slight decline in EBITA due to unfavorable currency movements.
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The North American market experienced a downturn, particularly in the fluid power business related to construction and agriculture equipment.
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Central costs were high in the quarter, attributed to increased M&A activity, impacting overall profitability.
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The company anticipates a slightly lower outlook for the next quarter, citing potential early holiday shutdowns and continued inventory adjustments in key markets.
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Organic sales growth in the medical solutions segment was only 1%, reflecting ongoing challenges with inventory management among customers.
Q & A Highlights
Q: Can you provide more color on the growth dynamics in Asia and the visibility on your investment projects? A: Growth in Asia is widespread, driven by LNG and infrastructure projects, as well as offshore windmill projects. We are expanding our presence and improving project specifications. The investments are not speculative; they are based on solid business cases with strategic rationale. We expect these investments to be profitable once operational. (Peter Nilsson, CEO)