Mycronic AB (OTCPK:MICLF)
$ 36.2 9.95 (37.9%) Market Cap: 3.48 Bil Enterprise Value: 3.28 Bil PE Ratio: 22.47 PB Ratio: 6.45 GF Score: 89/100

Q3 2024 Mycronic AB (publ) Earnings Call Transcript

Oct 24, 2024 / 08:00AM GMT
Release Date Price: $36.2

Key Points

Positve
  • Mycronic AB (MICLF) reported a 40% increase in sales, reaching almost SEK 1.8 billion, driven by strong performance in the Pati generators division.
  • The company achieved a robust EBIT margin of 31%, with absolute EBIT more than doubling compared to the same quarter last year.
  • The high volume division showed significant improvement, with a 56% increase in order intake and a 37% rise in sales.
  • Mycronic AB (MICLF) confirmed its sales target for 2024, aiming to reach SEK 6.5 billion by the end of the year.
  • The company made progress in sustainability efforts, with over 60% of its electricity now sourced from renewable energy.
Negative
  • Order intake was flat, declining by 1% to just under SEK 1.5 billion, indicating potential challenges in maintaining growth momentum.
  • The high flex division experienced a 5% decline in order intake and a 7% drop in sales, reflecting ongoing weakness in the European market.
  • Despite higher revenues, the high volume division's margins remained unchanged year-over-year, suggesting challenges in improving profitability.
  • The newly acquired Vanguard Automation business had no sales contribution in the quarter, impacting EBIT negatively by SEK 14 million.
  • The backlog decreased to SEK 4.4 billion, as sales outpaced order intake, potentially affecting future revenue visibility.
Sven Chetkovich Mycronic AB;Director Investor Relations

Hello and welcome to the presentation of Mycronics Q3 report. My name is Sven Chetkovich. I'm the Director of Investor Relations at Mycronics and with me today, I have Anders Lindqvist Mycronics CEO and Pierre Brorsson CFO who will be presenting today with that. I hand over to Anders Lindqvist. Please go ahead and Mycronics present Q3 report.

Anders Lindqvist Mycronic AB;President and CEO

Thank you very much and most welcome to everyone to today's session. So I will start to present a short overview of the quarter three results and what has happened. We will also look into the different divisions and the development and will talk a little bit deeper on the financials and finally a few words on our work in sustainability and then we finish with the question and answers and starting with that, starting with the quarter, I think we saw a very good increase in sales and water intake was quite flat on a not a super high level, declined with 1% to a little bit less than SEK1.5 billion billion. But

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