Q2 2024 Coor Service Management Holding AB Earnings Call Transcript
Key Points
- Coor Service Management Holding AB (LTS:0R8Q) successfully prolonged several key contracts, including a large IFM contract with the Danish Police valued at SEK900 million.
- The company secured contract extensions worth around SEK1.4 billion in the first half of the year, achieving a strong year-to-date retention rate of 94%.
- Coor launched the Carbon Insights tool, which provides customers with climate data and helps them make climate impact assessments.
- The integration of the acquired Swedish cleaning company, Skaraborgs Stä, was successfully concluded, adding value as expected.
- The company reported a stable EBITDA margin of 5.1% for Q2, in line with the previous year, and maintained a solid cash conversion rate of 92%.
- Organic growth for the quarter was negative 1%, with newly started contracts only partially compensating for ended contracts.
- The EBITDA margin of 5.1% is still below the company's target of around 5.5%.
- The restructuring program is taking longer than expected to realize financial effects, although it is still anticipated to meet targets by the end of the year.
- Organic growth in Sweden was negative 3% due to the negative effects of ended contracts, including a significant contract with Ericsson.
- Denmark experienced negative organic growth of 4% due to ended mid-sized public contracts and lower variable volumes in the public sector.
Thank you and welcome all. And thank you for listening to Coor's Q2 report. Before presenting the report, I will give a short introduction of Coor's, for those of you who do not yet know Coor.
We are the leading facility management provider in the Nordics and offer our customers a broad range of services. We future-proof our company by drive and steer Coor from a triple bottom line perspective, meaning that we are taking a business, social, and environmental responsibility. And from a business perspective, we have a clear ambition to have a stable and solid financial development with high customer satisfaction.
And from a social perspective, we have a clear ambition to attract the best talents in the market as well as support and develop our employees. And I'm very proud of leading a company where diversity and inclusion makes a difference. Where we believe diversity creates an even more successful company. And we have a clear ambition to improve the environment. Our
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