In This Article:
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Order Intake Growth: 8% increase from EUR 62.3 million in Q3 2023 to EUR 67 million in Q3 2024.
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Sales Growth: 12% increase from EUR 61.4 million to EUR 69 million.
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EBITA: EUR 13.6 million, up from EUR 12.8 million in Q3 2023.
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EBITA Margin: 19.7%, compared to 20.9% in Q3 2023.
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Operating Cash Flow: EUR 13.7 million, up from EUR 12.5 million in Q3 2023.
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Net Debt: Reduced from 1.0 in Q2 2024 to 0.9 in Q3 2024.
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Working Capital: Increased from EUR 56.9 million to EUR 58.9 million.
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Earnings Per Share: 60%, same level as Q3 2023.
Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Troax Group AB (STU:5TO) reported an 8% growth in order intake, supported by a 9% structural effect from acquisitions.
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Sales increased by 12% year-over-year, with a strong EBITA margin of 19.7% despite lower volumes.
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The company delivered strong operating cash flow and continued to reduce net debt, strengthening its balance sheet.
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Troax Group AB inaugurated a new facility in China, enhancing its growth potential in the APAC region.
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North America showed a 12% growth in the quarter, driven by the warehousing and automotive segments.
Negative Points
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Organic growth was down by 1%, indicating reliance on acquisitions for growth.
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Continental Europe, the largest sales area, saw a 5% decrease in the quarter.
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The Nordic region continued to decline, mainly due to the construction segment's weakness.
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The EBITA margin of 19.7% was below the previous year's 20.9%, indicating margin pressure.
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The company faced challenges in the northern parts of Europe, with mixed demand and weak market conditions.
Q & A Highlights
Q: Can you elaborate on the sales and order intake in Europe, given the mixed results? A: Martin Nystrom, President and CEO, explained that Europe presents a mixed picture. The Nordics remain weak, and the German-speaking regions also show underlying market weakness. However, the southern parts of Europe are more stable, and the overall picture is expected to remain mixed into the fourth quarter and 2025.
Q: What is driving the growth in North America, and how significant is active safety in this growth? A: Martin Nystrom noted that while active safety is promising for the future, the current growth is driven by conventional business, particularly in warehousing and automotive sectors. Active safety is still in the early stages but shows potential for future growth.
Q: Can you provide details on the investment plans for North America? A: Martin Nystrom stated that Troax is evaluating options to grow and improve efficiency in North America, with plans to invest between $8 million and $10 million in machinery. The aim is to have a new facility operational by 2026.