Q3 2024 Granges AB Earnings Call Transcript
Key Points
- Granges AB (FRA:9GR) reported a 7% increase in sales volume, reaching 123,000 tonnes, despite weak automotive demand.
- The company achieved stable operating profit at SEK420 million, largely offsetting price pressure and wage inflation through productivity improvements and effective metals management.
- Granges AB (FRA:9GR) demonstrated significant sustainability progress, with a 33% reduction in carbon emissions intensity compared to 2017 and record aluminum recycling levels.
- The company announced a strategic partnership with Shandong Innovation Group, aimed at strengthening competitiveness and market share growth in Asia.
- Granges Eurasia showed strong growth, with a 10% year-on-year increase in sales volume, driven by recovery in Europe and Asia.
- The automotive market remains weak, posing challenges for Granges AB (FRA:9GR) despite their efforts to offset this with market share gains.
- Sequentially, sales volume declined by 6%, reflecting a return to more normal seasonality, which also impacted operating profit.
- The EBIT per tonne decreased from SEK380 in Q3 last year to SEK340 this year, indicating some pressure on profitability.
- Depreciation increased by SEK8 million year-over-year due to completed expansion projects, impacting financial results.
- The company anticipates a potential increase in leverage in Q4 due to higher capital expenditure and dividend payments.
Good morning, ladies and gentlemen, and welcome to this Q3 results conference with Gränges. My name is Jörgen Rosengren. I'm Gränges' CEO and I'm here with Oskar Hellstrom, our CFO; and with Sara Lander Hyléen, our VP Communication & Investor Relations.
We'll be referring in this call to a PowerPoint presentation that's available on our web page. And I'm going to start on page two of that presentation. And as you can see on this page, we had in the third quarter of this year, another growth quarter. And that's very gratifying, especially considering that the market was rather slow.
Our sales volume increased by 7% to 123,000 tonnes compared to 115,000 last year. And this, as I just said, was in spite the rather weak automotive demand, but bolstered by good growth in other markets. And in all of our segments and in all of our markets, in fact, we had really good effect of the market share gains that we've achieved over the past 1.5 years or 2 during an increased focus period on sales for Gränges. That's, of
| 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
