Q2 2024 Kitron ASA Earnings Call Transcript
Key Points
- Kitron ASA (FRA:KP5) delivered an operating profit of close to 9%, indicating strong profitability.
- The Nordic and US operations showed positive momentum with a robust margin, largely driven by increased scale, resulting in 15% growth.
- Kitron ASA (FRA:KP5) announced significant orders worth NOK500 million from Kongsberg Defense and Aerospace for electronics for the Naval Strike Missile.
- A new 7,500 square meter production facility is being built in Norway to support increasing demand, expected to be ready by early 2026.
- The restructuring program launched in the first quarter is close to completion, yielding expected cost improvements and strong margins in the second quarter.
- Revenue for the quarter ended at EUR167.6 million, a reduction of almost 19% compared to last year.
- EBITDA decreased to EUR15 million from EUR19.2 million last year, indicating a decline in earnings.
- There were dramatic reductions in revenue for both CEE and Asia, with volume reductions of around and above 40%.
- Net income decreased to EUR10.4 million, corresponding to about 6.2% of revenues, down from 7.6% last year.
- The electrification sector showed a year-on-year decline, with continued low sales on many green tech products due to reduced consumer spending.
Good morning, and welcome to Kitron second quarter report 2024. I'm Peter Nilsson, CEO of the Kitron Group. And joining me as usual is Ms. Cathrin Nylander, CFO. Following today's brief presentation, we'll have a Q&A, so please post any questions you may have in the Q&A section of the webcast. I see that we're already have half a dozen questions come in.
So next slide, slide 2, please, and let's jump right into some major milestones for the quarter. We again delivered an operating profit of close to 9%. The Nordic and US operations show positive momentum with a robust margin, largely driven by increased scale. Overall, the region delivers some 15% growth. We expect this trend to continue throughout the year.
At the end of the quarter, we announced orders worth NOK500 million from Kongsberg Defense and Aerospace's for electronics for the Naval Strike Missile. The deliveries will start in 2025 and continue into 2026. It would taking place at the Kitron's facility in Norway.
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