Q3 2024 Nolato AB Earnings Call Transcript
Key Points
- Nolato AB (NLTBF) reported a 5% increase in sales for the third quarter of 2024, with growth across both business areas.
- The company's EBITA rose by 22%, reaching SEK235 million, resulting in an improved margin of 9.8%.
- The medical solutions business area experienced growth in in vitro diagnostics and drug delivery, indicating recovery from previous sluggish volumes.
- Cash flow from operating activities increased to SEK327 million, compared to SEK280 million in the previous quarter.
- Nolato AB (NLTBF) has a strong financial position with a relation of EBITDA to financial liabilities at 0.6 times, enabling strategic actions with customers.
- The automotive segment experienced a decline in volumes due to lower end customer demand, which is expected to negatively impact the fourth quarter.
- The pharmaceutical packaging segment saw lower volumes due to customer inventory adjustments and geopolitical effects.
- There were temporary inventory buildups in the surgical segment, which will have a negative impact in the fourth quarter.
- The engineered solutions business faced a downturn due to the phaseout of the VHP business.
- Net investments increased to SEK136 million, higher than previous quarters, due to medical expansion in Hungary, impacting cash flow.
Hello, and welcome to today's call with Nolato. Our CEO, Christer Wahlquist and CFO, Per-Ola Holmstrom, will present the report for the third quarter of 2024. After the presentation, there will be a Q&A. (Operator Instructions) And with that said, I hand over the word to you, guys.
Thank you, and welcome to the presentation of the third quarter of the Nolato Group. This is Christer Wahlquist speaking. If we start on page 2 with a summary of the third quarter, we saw a quarter with an increased sales approximately 5%, and the growth was across both business areas.
We saw an increased EBITA that rose to -- rose by 22%, ending up at SEK235 million. That, of course, corresponds to an increased margin ended up at 9.8%, and we saw this situation in both our business areas. The strong financial position with relation EBITDA towards financial liabilities ended up at 0.6 times. This is enabling us to act together with customers and continue to build our global offering to the market.
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