Lifco AB (OTCPK:LFABF)
$ 43 (0%) Market Cap: 18.38 Bil Enterprise Value: 19.28 Bil PE Ratio: 52.25 PB Ratio: 10.05 GF Score: 82/100

Q1 2025 Lifco AB (publ) Earnings Call Transcript

Apr 25, 2025 / 07:00AM GMT
Release Date Price: $25.85

Key Points

Positve
  • Lifco AB (LTS:0R4P) reported a 15% growth in sales for Q1 2025, driven by 8% organic growth and strong acquisition growth.
  • EBITDA increased by 17%, with a slightly higher EBITA margin compared to the previous year.
  • The demolition tools segment showed a strong performance with a 10% sales growth and a 25% margin, indicating improving market conditions.
  • Profit before tax grew by approximately 20%, showcasing strong financial performance.
  • The company's debt position remains healthy at 1.1 times interest-bearing net debt to EBT, allowing room for future acquisitions.
Negative
  • Cash flow growth was limited to 3% in the quarter, affected by higher tax payments and working capital build-up.
  • The system solutions segment experienced a margin drop due to a product mix effect and weaker profit levels in some subdivisions.
  • Contract manufacturing showed signs of returning to normal levels, with low visibility on future performance.
  • The company faces uncertainty due to recent global economic turbulence and tariffs, impacting future market conditions.
  • Some areas within the demolition tools segment still experience weaker conditions, indicating uneven recovery.
Operator

Lifco Q1 report for 2025. For the first part of the conference call, the participants will be in listen-only mode. (Operator Instructions) Now I will hand the conference over to CEO, Per Waldemarson and CFO, Therése Hoffman. Please go ahead.

Per Waldemarson;publ;President
Lifco AB;Chief Executive Officer, Director

()- -

Thank you and good morning everyone. We can move directly into page number 2 in our investor presentation where we look at the group's overall financial performance in the first quarter. And it was overall on the group level, a mixed quarter, with mixed outcome in various ports of Lifeco, but overall on the high level, solid performance for the group. We had a 15% growth in sales. Driven by around 8% organic growth, particularly strong growth in sales and solutions which will come back to in the next slide. We have also strong growth and acquisitions of 8% in sales.

If we go further down and look at the EBITDA, we grew up with 17%, and we have slightly higher EBITA margin compared to the

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