Q3 2024 Nibe Industrier AB Earnings Call Transcript
Key Points
- NIBE Industrier AB (NDRBF) reported a more stable market environment, with inventory levels returning to acceptable levels, aligning production with actual demand.
- The company has implemented a cost-saving program that is expected to show full effects in 2025, demonstrating agility and resilience in challenging market conditions.
- Despite a tough market, NIBE Industrier AB (NDRBF) remains optimistic about future growth, supported by a strong action plan and cost reductions.
- The company has maintained a clear and determined target to return to historical operating margin levels, showing commitment to financial recovery.
- NIBE Industrier AB (NDRBF) has a strong presence in North America, with a balanced geographical distribution of sales, which provides a stable market base.
- The company experienced a significant contraction in sales, down approximately 20% compared to the previous year, impacting operating margins.
- Gross margins have taken a hit and remain below last year's levels, indicating ongoing financial challenges.
- The heating element and wind power sectors have faced downturns, making it difficult to compensate within those business areas.
- The stoves segment has struggled with a dramatic drop in sales, down 21%, and operating margins far from desired levels.
- Working capital remains a challenge, with a focus on reducing inventory levels and improving cash flow, which has decreased significantly compared to the previous year.
Ladies and gentlemen, welcome to the NIBE third-quarter report 2024. At our customers request, this conference call will be recorded. (Operator Instructions) I may now hand you over to Eric Lindquist, CEO; and Hans Backman, CFO. Please go ahead.
Thank you. Good morning everyone out there.
Good morning.
Good morning, and we're going to follow the same procedure years before, as I go through a number of slides here and then Hans continues. But on top of that, we like to address that there have been so many questions in the past and sometimes there are people who they have not been able to put questions. So for the sake of order and some courtesy we'd like to address that every individual person that is allowed to come in only puts
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