Q3 2024 Elanders AB Earnings Call Transcript
Key Points
- Elanders AB (STU:EA5B) reported an organic growth of 3.9% for the group, driven by improvements in Europe and Asia.
- The company's adjusted EBITA result improved by 12% compared to the previous year, with supply chain solutions being a significant contributor.
- Elanders AB (STU:EA5B) achieved a 5.2% organic growth in supply chain solutions, primarily from activities in Europe and Asia.
- The adjusted EBITA margin increased to 7.2% from 6.7% the previous year, reflecting the company's strategy to focus on higher-margin services.
- The electronics segment showed positive growth with an organic increase of around 5%, driven by demand for laptops, servers, and life cycle management services.
- North America remains weak, particularly in the fashion segment, with a negative organic growth of 19%.
- The print and packaging solutions segment faced a challenging quarter with a negative growth of 2% and a decrease in adjusted EBITA margin to 4.9% from 6.5% the previous year.
- The automotive segment experienced a negative organic growth of 18% in print and packaging, impacting overall performance.
- The company's cash flow and cash conversion development decreased to 86% due to increased working capital from organic growth.
- Leverage remains high at 3.7 times, slightly above the anticipated development for the year.
Welcome to the Elanders AB conference call. My name is Allen, and I will be your coordinator for today's event. Please note this call is being recorded. (Operator Instructions)
I will now hand you over to your host, Magnus Nilsson, to begin today's conference. Thank you.
Thank you, Allen. Welcome, everyone, to Elanders conference call. And together with me here, I also have Asa Vilsson, Elanders' CFO. And now I will go to our presentation, and I will go directly to slide number 5, look at the third quarter. And you can see in the third quarter that demand continued to improve, like you also could see in the second quarter.
And we could also see that several of our customer segments continues to improve, and the improvement was mainly in Europe and Asia. But North America, that has very high exposure towards fashion continues to remain weak. But all in all, this resulted in an organic growth of 3.9% for the group. And if you look at our adjusted EBITA result,
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