Q3 2024 Lindab International AB Earnings Call Transcript
Key Points
- Lindab International AB (FRA:L5E) achieved the highest sales ever for a third quarter, with a 3% increase in sales.
- Ventilation systems, which account for 76% of sales, grew by 6% due to successful acquisitions.
- The company maintained a solid cash flow, with SEK 259 million from operating activities.
- Lindab's financial position remains healthy, with a net debt to EBITDA ratio of 2.3 times, below the target of three times.
- The company is focusing on digital tools and services to enhance customer service and efficiency, positioning itself well for future demand.
- The adjusted operating margin of 9.1% was below both the target and expectations, indicating profitability challenges.
- Organic sales growth was negative by 3% due to slow market demand, impacting overall sales performance.
- Profile systems experienced a 6% decrease in total sales, with no signs of improvement in Eastern Europe.
- The company had to write off 100% of its investment in Leapcraft, a software and sensor company, due to difficulties in finding a viable commercial model.
- The UK Competition and Markets Authority's decision requires Lindab to divest branches, potentially impacting sales in the UK by approximately 2%.
Hello and welcome to this call. My name is Ola Ringdahl and I'm the President and CEO of Lindab Group. And next to me, I have our CFO Lars Ynner. Start with the Q3 summary.
In the third quarter, Lindab increased sales by 3% and reached the highest sales ever for a third quarter. Business area ventilation systems which accounted for 76% of sales in the quarter continued to grow as a result of completed acquisitions. For the group the adjusted operating margin was 9.1% which is lower than the same period of the previous year.
The profitability was below our target and our own expectations. Further cost savings will be implemented during the fourth quarter to achieve the profitability targets. Cash flow developed according to our expectations and cash flow from operating activities amounted to SEK 259 million.
Let's first take a closer look at the revenue development. Ventilation systems increased sales by 6%. Acquisitions continue to contribute strongly to our sales growth and in the third quarter, acquisitions added 11%
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
