Q2 2024 Lifco AB (publ) Earnings Call Transcript
Key Points
- Lifco AB (LFCAF) reported an 8% growth in sales, driven by acquisitions and a minor positive impact from foreign exchange rates.
- EBITDA also grew by 8%, maintaining a stable EBITDA margin of around 24%, consistent with the previous year.
- Operating cash flow increased significantly by 37.5%, indicating strong cash generation capabilities.
- Earnings per share grew by 5%, reflecting improved profitability.
- The company has a robust financial position with a net debt-to-EBITDA ratio of 1.3 times, providing capacity for future acquisitions.
- Organic sales growth was negative at -4% for the first six months, indicating underlying challenges in core operations.
- The demolition and tools segment faced weak market conditions, with a sales decline of 8% in the second quarter and a severe 13% drop in the first six months.
- Higher interest costs led to slightly lower profit before tax, impacting overall profitability.
- The dental field experienced a negative effect from Easter, affecting sales and operational performance.
- The market conditions in Europe, particularly in construction-related sectors, remain tough and uncertain, posing ongoing challenges.
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Good morning everyone, and welcome to the Lifco second quarter earnings call. We can start with going directly into slide number two in our investor presentation and have the high-level look at the overall Group performance in the second quarter.
We are growing sales with the 8% consisting of actually small negative organic decline. Sales helped by around 8% growth from acquisitions, a smaller 0.6% help from foreign exchange rate. The EBITDA is also growing with around 8%. Margin -- EBITDA margin is in line with the -- with previous year, around 24%. And then we have slightly lower profit before tax due to continued higher interest costs affecting this quarter.
We have strong operating cash flow increase and that at 37.5% and then earnings per share growing by 5%. If we look at the first six months of 2024, we obviously have a slightly lower growth numbers on sales, given that we had a weaker start in the first quarter.
I just want to remind everyone that as
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