Q2 2024 HMS Networks AB Earnings Call Transcript
Key Points
- Total growth of 20% driven by the acquisition of Red Lion Controls.
- Sequential growth in order intake from the last quarter by 9%.
- Improvement in EBIT margins and cash flow.
- Strong position in the industrial market with over 10 million connected devices.
- Positive progress in North America with good market orders.
- Organic growth decline of 22% in order intake.
- Weak revenue situation with a 20% decline in organic growth.
- Challenges in Europe, particularly in Germany, with slower market recovery.
- Significant impact from destocking, especially in Continental Europe and Japan.
- Integration of Red Lion Controls requiring substantial effort and investment.
Thank you very much. Good morning, everybody, welcome to this Q2 update from HMS, the agenda we have is quite standardized. I'll start with short summary of our business since there are some newcomers on the call that introduction. I'll do a brief update and then Joakim will quickly move into what you're really here for the financial results. And we end up with a Q&A.
So just to review over according to a quarter where this quite many different things happening, we have been talking about destocking in this difficult market and how to predict the really the market demand. We talk about a soft market, but we also talk about this new resource acquisition of Red Lion Controls that's coming with the first quarter here.
So and total growth plus 20%. Of course, this is driven by the acquisition that we see a negative growth organic growth with Alpha line of minus 20%. So that that order situation is now showing was in the quite weak revenue.
Order intake, mixed picture, of course, we see a total
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