Q2 2024 Nolato AB Earnings Call Transcript
Key Points
- Nolato AB (LTS:0OA9) reported a strong cash flow from operating activities amounting to SEK434 million.
- The company achieved an operating profit of SEK245 million, reflecting a 24% increase from the previous year.
- The EBITDA margin improved to 10.0% compared to 8.0% last year.
- The medical solutions segment, which is the largest part of the group, maintained its sales and saw growth in the in vitro diagnostic (IVD) area.
- Nolato AB (LTS:0OA9) has a solid financial position with net financial liabilities of just above SEK1.1 billion and an adjusted debt ratio of 0.8 times.
- Overall sales decreased by approximately 2% when adjusted for currency and acquisitions.
- The VHP effect, which has been a drag on performance, will continue to impact the next quarter.
- The pharmaceutical packaging segment experienced lower volumes due to inventory adjustments and geopolitical effects.
- The engineered solutions segment saw a 4% decrease in sales, primarily due to lower volumes in consumer electronics.
- The company anticipates a bigger vacation effect in Q3, which could negatively impact sales.
Hello and welcome to today's webcast presentation where Nolato will present the Q2 report for 2024. With us presenting, we have the CEO, Christer Wahlquist; and CFO, Per-Ola Holmström. (Operator Instructions)
And with that said, please go ahead with your presentation.
Good afternoon, everybody, and welcome to Nolato's presentation of second quarter 2024. This is Christer Wahlquist speaking.
Starting on the second page of the presentation deck, we can conclude that the sales amounted to a little bit more than SEK2.4 billion during the second quarter, which is a decrease of approximately 2% if we adjust for currency and acquisitions. We also see that the VHP effect will be phased out during next quarter. And if we would exclude the VHP effect from this quarter, we would have seen growth.
The operating profit ended up at SEK245 million in the quarter, and we see that our margin improvement initiatives yields desired effects. During the quarter, we had a very strong
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