Q1 2025 Addtech AB Earnings Call Transcript
Key Points
- Addtech AB (STU:AZZ2) reported a solid net sales growth of 7%, with 2% organic growth.
- EBITDA increased by 19% in the quarter, achieving a satisfying margin of 15.3%.
- The company continued to strengthen its profitability and improve its product mix.
- Cash flow remained at very good levels, with profitable working capital surpassing a new record level of 70%.
- Addtech AB (STU:AZZ2) maintained a high pace of acquisitions, adding SEK860 million in turnover with good profitability.
- Customer activity showed variations between and within segments, indicating some instability.
- The MedTech segment experienced a slight drop due to softer demand and tough year-on-year comparisons.
- Data, telecom, and building installation sectors remained weak, affecting overall performance.
- The market for new projects in the construction sector is still on hold due to high interest rates and weak construction markets.
- Some hesitation in CapEx related investment decisions due to the uncertain economic situation.
Good morning, and most welcome, everyone to Addtech first quarter report presentation. Today's setup is Malin and I will use approximately 50 minutes to summarize the highlights and give our comments to the results and followed by a Q&A session.
All in all, the new fiscal year have started off in a good way. In general, the customer activity remained stable at high levels resulting in a solid net sales growth of 7% or which 2% organic growth. We also continued to strengthen our profitability. EBITDA is up 19% in the quarter with a very satisfying margin of 15.3% and also a further improvement of our profitable working capital. Cash flow continues to be at very good levels. And as you have noticed, our acquisition pace was high during the period. More about that within short.
A bit deeper into sales, as I've already said, a high activity in all business areas. We grew net sales 7%. And as I said, we are back to organic growth with 2% in the period. And as you see in the lower graph, it was a broad base with
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