Q3 2024 Loomis AB Earnings Call Transcript
Key Points
- Loomis AB (LOIMF) reported strong revenue and operating income for Q3 2024, with revenues exceeding SEK7.6 million.
- The company achieved an organic growth rate of 5.5%, driven by high demand for cash-handling automated solutions.
- The US segment delivered a robust performance with a strong operating margin of 16.1%, up from 14.2% in the previous year.
- Loomis AB (LOIMF) issued its inaugural Eurobond of EUR300 million, linked to its updated sustainability-linked finance framework.
- The company demonstrated a strong operating cash flow with a cash conversion rate of 134% for the quarter and 122% on a 12-month basis.
- Currency rate changes negatively impacted total revenue growth, particularly due to the strengthening of the Swedish krona.
- Restructuring programs in Europe and Latin America faced delays, affecting the ability to meet the full-year operating margin target of 12% to 14%.
- The international business line experienced cyclical headwinds, impacting growth.
- The European and Latin American regions showed slightly lower-than-expected profitability due to restructuring delays.
- Interest costs increased despite a favorable interest rate environment, partly due to nonrecurring items and FX losses.
Ladies and gentlemen, welcome to the Loomis Q3 2024 report conference call. I am Sari, the Chorus Call operator.
(Operator Instructions) And the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead.
Thank you very much. Good morning, everyone, and welcome to the third-quarter presentation for Loomis. My name is Aritz Larrea, and I'm the CEO of Loomis. With me here today, I have our CFO, Johan Wilsby; and Jenny Boström, our Head of Sustainability and Investor Relations.
I'll start by providing a quick summary of our Q3 business performance and outcomes before taking questions. Let's start the presentation by turning to slide number 2.
We had a strong quarter in terms of both revenue and operating income. We achieved revenues above SEK7.6 million, with growth across our three reporting segments and most
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