Q3 2024 Bravida Holding AB Earnings Call Transcript
Key Points
- Bravida Holding AB (LTS:0RBW) reported a strong cash flow improvement, with SEK193 million compared to a negative SEK212 million last year, marking an improvement of around SEK400 million.
- The company achieved a cash conversion rate of 134%, indicating efficient management of working capital.
- Service business grew by 8%, providing stability in challenging market conditions.
- Positive margin improvements were noted in Finland and Norway, with Norway's margin reaching 5.7% including the Thunestvedt acquisition.
- Bravida Holding AB (LTS:0RBW) has a strong acquisition pipeline and has completed nine acquisitions this year, adding approximately SEK0.5 billion in sales.
- Organic growth was negative at minus 3%, reflecting challenges in the market.
- Order intake decreased by 12%, attributed to strict project selection and soft market demands, particularly in Finland and southern Sweden.
- The EBITA margin decreased to 4.5% from 5.4% last year, affected by operational changes in Denmark and weak demand in southern Sweden.
- Restructuring costs amounted to SEK19 million for the quarter, impacting margins by approximately 0.3 percentage points.
- The order backlog decreased during the quarter, except in Denmark, indicating potential future revenue challenges.
Good morning, everyone and welcome to this presentation of our Q3 report 2024 and ours means Bravida. And as usual and always, it's myself Mattias, CEO, who will take you through this presentation together with.
Asa Neving, CFO.
So again, warm, welcome to this presentation. And we start directly with the Q3 highlights really strong cash conversion, cash flow improves a lot in the quarter which is fantastic. Otherwise, we have a flat growth which is pretty much as expected as earlier communicated. Service is growing with 8%, organic growth is minus 3%. The order intake is down with 12% mainly because of that we are very strict in our project selection.
But also, of course, due to the soft market demands we see especially in Finland and the South part of Sweden. Order backlog is still on very
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