Half Year 2024 Karnov Group AB (publ) Earnings Call Transcript
Key Points
- Karnov Group AB (FRA:3UA) reported solid net sales growth with a 3% organic increase, driven by strong performance in Region North.
- The company achieved a significant improvement in its adjusted EBITA margin, reaching 21% in the second quarter.
- Karnov Group AB successfully completed acquisitions in Denmark and France, enhancing its mission-critical legal information solutions.
- The company is preparing to launch new AI innovations, including a generative AI platform, which is expected to drive future growth.
- Karnov Group AB has harvested synergies on an annual run rate basis of EUR7 million, with a target of EUR20 million by the end of 2026.
- Leverage increased to 3.0 times EBITDA over the last 12 months, partly due to recent acquisitions.
- Region South experienced flat sales growth, indicating challenges in achieving organic growth in that segment.
- Online sales in Region South declined by 3% compared to the previous year, impacting overall performance.
- Items affecting comparability amounted to SEK53 million, related to integration and acceleration initiatives, which could affect profitability.
- The company is undergoing a rationalization of its business portfolio, which may involve restructuring costs and operational disruptions.
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Welcome everyone to Karnov Group's earnings conference (inaudible) We will present the outcome of the second quarter of 2024. Please go to slide 2. I'm Pontus Bodelsson, President and CEO of the company. With me, I have our CFO, Magnus Hansson and our Head of Investor Relations, Erik Berggren. Magnus and I will present the outcome of the quarter using a few slides and then we'll open up for questions.
With that said, let's get started with the presentation of the second quarter. Please go to slide 3. We deliver on our promises in the second quarter with solid net sales growth and strong margins improvements. We have expanded our mission critical legal information solutions for our customers, completing acquisitions in Denmark and France for further profitable growth.
We have a strong focus on harvesting synergies from our initiatives, while at the same time preparing the launch of new AI innovations. Net sales grew to SEK623 million in the quarter, the organic growth was 3%
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