Q2 2025 Lagercrantz Group AB Earnings Call Transcript
Key Points
- Lagercrantz Group AB (FRA:LG72) reported a solid quarter with a 16% increase in net sales, primarily driven by acquisitions.
- The EBITA margin remained stable at a strong 17.8%, reflecting efficient operational management.
- The company completed two acquisitions in July, contributing to a rolling 12-month revenue increase of over SEK 1.1 billion.
- The niche products division showed impressive growth with a 21% increase in revenues and an all-time high EBITA margin of 22.9%.
- Lagercrantz Group AB (FRA:LG72) continues to expand internationally, with significant growth in the UK market, now accounting for 7% of total revenue.
- Organic growth was modest at 1%, indicating reliance on acquisitions for revenue increases.
- The construction sector remains challenging, impacting the control and tech divisions negatively.
- Cash flow performance did not meet the company's high ambitions, despite being at a good level.
- The market recovery has been slower than expected, with some growth anticipated to be delayed into 2025.
- The company faces higher tax rates due to expansion into regions with higher tax environments, such as the UK and the US.
Welcome to Lagercrantz Group Q2 report 2024-25.
For the first part of the conference call, the participants will be in listen-only mode during the questions and answer session. Participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Jörgen Wigh and CFO Peter Thysell. Please go ahead.
This call is being recorded. Your line is muted. Welcome to Lagercrantz Group Q2 report 2024 -25.
For the first part of the conference call, the participants will be in listen-only mode during the questions and answer session. Participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Jörgen Wigh and CFO Peter Thysell. Please go ahead.
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Good morning, everyone and welcome to Lagercrantz's presentation of our Q2 report. And speaking here is Jörgen the CEO of the group and together with me here, I have to sell right right beside
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