Q3 2024 Eltel AB Earnings Call Transcript
Key Points
- Eltel AB (STU:E5E) reported a 4% organic net sales growth, driven by strong performances in Finland and Sweden.
- The company achieved its best-ever quarterly profit on adjusted EBITDA since 2015, marking five consecutive quarters of year-on-year improvement.
- Finland and Sweden led profitability improvements, with Finland achieving a 52% increase in profitability.
- Eltel AB secured new contracts, including a significant agreement with Helen Energy Company in Helsinki and a third agreement with the Swedish Armed Forces.
- The company is actively expanding into new and adjacent markets, particularly in renewable energy and public infrastructure, with a growing pipeline in battery energy storage systems.
- Eltel AB's order book decreased from EUR1.2 billion to EUR1.1 billion, indicating a decline in future business commitments.
- The company faces ongoing challenges in Norway, with a 10% decrease in net sales and a restructuring program impacting personnel and fleet.
- There is a delay in customer decision-making, particularly in new energy areas like solar, attributed to high interest rates.
- The company's liquidity reserves of EUR47.6 million are lower than its current interest-bearing debt of EUR86 million, raising potential liquidity concerns.
- Eltel AB removed its 2025 timeline for achieving a 5% adjusted EBITDA margin, citing current market conditions as unrealistic for meeting this target.
A warm welcome to this presentation of Eltel's third quarter. My name is Alexandra Kärnlund. I am the communications director of Eltel, to present the results. We have our CFO Tarja Leikas, and our CEO and President Håkan Dahlström.
And after the presentations, we will open up for questions, and you can already start asking your questions, you can ask them throughout the presentation by posting them in the chat field, with that. I'd like to hand over to you welcome.
Thank you, Alexandra. Good morning all.
Looking at the third quarter, we see solid growth in net sales driven by Finland and Sweden. But we also see an improved and strong, also driven by Finland and Sweden. So we reach a net sales of EUR210 million to be compared with EUR213 million last year. But when we compare to last year, we need to remember that, the High Voltage, business in Poland that we divested during the first half of this year contributed with
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