Q2 2024 Indutrade AB Earnings Call Transcript
Key Points
- Stable order intake growth of 6% and net sales increase of 5%, supported by good acquisition pace.
- Strong performance in the MedTech and pharma sectors, particularly in the diabetes area.
- Record high acquisition pace with 12 acquisitions completed in 2024, contributing to a combined annual sales of SEK1.1 billion.
- Solid EBITDA margin of 14.8%, consistent with the previous year, indicating strong cost management.
- Positive organic gross margin development and solid sales growth in Life Science, Process, Energy & Water, and Technology System Solutions.
- Business climate in the infrastructure and construction sector remains dampened, with a slow expected recovery.
- Slightly weaker business climate in central parts of Europe, particularly in the Benelux area.
- Sales to North America and Asia remain volatile, influenced by single projects and companies.
- Organic sales growth did not fully compensate for the increase in expenses, despite improved cost management.
- Higher interest rates have increased finance net by 15% in the quarter and 16% year to date.
Welcome, and good morning, on our behalf as well. We are quite happy with this quarter. Good to be back in terms of organic growth and having a strong EBITDA margin. Let's start with some highlights. As I said, stable order intake growth of 6% in total were up 1% organically. Continued good demand in medical technology and pharmaceutical and also the process industry, basically the same segments and sectors as in quarter one.
Net sales increased 5% organically, 1% despite strong references and supported by some more working days EBITDA margin of 14.8%, exactly the same as the underlying EBITDA margin last year. Inventory slightly down from quarter one 2024, and also a good acquisition pace.
Six acquisitions completed in quarter two and 12 so far in 2024. And the inflow of interest in companies to acquire remains strong. If we then comment a bit more on the order intake and sales, it's a continued aggregated, stable, high demand in terms of order intake and an increased invoicing pace versus the first quarter,
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