Q2 2024 Solar A/S Earnings Call Transcript
Key Points
- Solar AS (FRA:ZVR) reported a sequential improvement in revenue from planned energy, increasing by almost 18% compared to Q1 2024.
- The company's Industry segment showed resilience with MAG45 delivering positive adjusted organic growth of more than 8%.
- Solar AS (FRA:ZVR) won a significant DKK200 million PV project with a major Danish industry customer, indicating strong project acquisition capabilities.
- The order pipeline for high-capacity ThermoNova heat pumps is growing, now exceeding DKK300 million, showing potential for future growth.
- Solar Denmark is showing signs of recovery with positive growth rates in July, marking the first positive growth in over a year.
- Overall revenue declined to DKK3.1 billion from DKK3.3 billion last year, with an adjusted organic growth of minus 7.8%.
- EBITDA decreased significantly to DKK137 million from DKK240 million last year, reflecting a challenging market environment.
- The Installation and Trade segments experienced substantial declines in adjusted organic growth, at approximately minus 11% and 14%, respectively.
- Gross profit margins have been negatively impacted by a less favorable mix and suppressed margins in Climate & Energy products.
- The conversion rate for ThermoNova heat pump orders remains low, indicating challenges in turning interest into actual sales.
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A very warm welcome to this second quarter webcast for the Solar Group. Together with me here in our headquarter in Vejen, I have my colleague, CFO, Michael Jeppesen. The agenda for today is a general business update and some highlights for Q2 presented by me. Then I will give you a short introduction to how we work in our solar industrial solutions team that is within industrial heat pumps, and it's a cornerstone in our new three-year strategy called Solve.
Michael will then present our 2Q results, including a high level cash flow status. And finally, of course, a q-and-a session.
As expected, all segments showed negative growth in Q2 2024. Revenue declined to DKK3.1 billion compared to DKK3.3 billion last year. Adjusted organic growth amounted to minus 7.8%, up from minus 15% in Q1 2024. Revenue from planned energy a strategic focus area remained at a low level in 2Q amounting to DKK234 million. But compared to Q1 '24, this is an
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