Q3 2024 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (FRA:YKK) has managed to maintain a decent profitability margin of around 6% despite a significant 30% decline in sales compared to the previous year.
- The company has successfully implemented cost-saving measures, achieving over EUR2 million in annual fixed cost savings, surpassing their initial target of EUR1 million.
- Order books have improved compared to Q2 2024, indicating a stronger short-term outlook and potential for future revenue growth.
- The company's acquisitions over the past four years have yielded a 15% return, demonstrating effective investment strategies.
- Boreo Oyj (FRA:YKK) has maintained its market share in all three of its markets, positioning itself well for profit generation when market conditions improve.
- Boreo Oyj (FRA:YKK) is facing a challenging market environment, with a significant decline in sales, particularly in the Finnish market, which heavily impacts their performance.
- The company's profits have decreased from EUR10 million a year ago to EUR7 million, with returns dropping from 13%-12% to 8%.
- Leverage is elevated at 3.3x, exceeding the company's target range, indicating financial strain.
- The Finnish economy's poor performance is negatively affecting Boreo Oyj (FRA:YKK), as a significant portion of their portfolio is focused on this market.
- The company's machinery and construction-related businesses have experienced a tough year, with postponed orders impacting revenue expectations.
Very good morning and welcome to Boris Q3 24 results Webcast. My name is Kari Nerg. I'm the CEO of the company and today with me is our new CFO Yes, pa. And we'll discuss the events of Q3 and, and anti outlook going forward starting off with the presentation before we jump into Q3 happenings, I will shortly discuss the, the, the overall situation where we, where we are as a, as a firm, then Q3 highlights as, as normal. And then yes, we will continue with more detailed business related comments and and also some reflections on group group financials followed up with Q&A and please use the function chat function made available there if you have any questions and we will address those then at the end of the presentation.
So starting off with, with our strategic targets and now let's an update where, where we are. So as the headline headline says, the overall situation of the firm remains remains as as a challenging one as it has been the last couple of quarters. So mainly
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