Q2 2024 Byggmax Group AB Earnings Call Transcript
Key Points
- Improved profitability despite a weak market, with an EBITA margin of 8.8%, higher than last year and pre-pandemic levels.
- Significant reduction in net debt by 29%, down to SEK480 million by the end of the quarter.
- Strong cash flow from operations and optimized inventory management.
- High customer satisfaction and efficient store operations, contributing to a better ramp-up during the high season.
- Successful purchasing efforts and optimized product assortment leading to a high gross margin of 33.6%.
- Net sales declined by 5.5% compared to the previous year, reflecting continued market weakness.
- Weaker demand for larger renovation projects, which take longer to initiate.
- Increased depreciation due to more leased stores and write-downs of associated companies.
- High seasonality in sales, requiring significant operational adjustments between seasons.
- Potential future impact on gross margin if demand for higher-ticket, lower-margin items increases.
(Operator Instructions)
I would now like to hand your conference call over to the host, Karl Sandlund, CEO. Please go ahead.
Thank you. Thank you very much. And again, welcome to this conference call where we will present the group's report for the second quarter of 2024. And as you heard, I'm Karl Sandlund, CEO of Byggmax, and with me Helena Nathhorst, our CFO.
And as usual, the presentation that we will go through is available on our website, and we will guide you to the right page throughout the call. And I will start with a short business update and an overview of our focus area later, Helena will cover the financials. And as you heard after presentation, we, of course, open up the floor and are ready to address your questions.
But let's begin and start with page number 2 in the presentation. This the second quarter of the year is part of our high season, as you know, and it's a quarter where we see substantial effects from our priorities. We have improved our
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