Q2 2024 Note AB (publ) Earnings Call Transcript
Key Points
- Western Europe profitability reached almost an all-time high at 10.5%.
- Operating cash flow was strong at SEK154 million.
- Inventory levels have declined significantly, reaching a two-year low.
- Expansion plans for the Torsby factory are expected to facilitate over 100% growth.
- The company has a strong balance sheet with an equity ratio of 49%.
- Sales were disappointing, with a 6% decline and 10% organic decline.
- Communication segment sales were down 20% for the first half and 27% in the second quarter.
- China's performance was weak, with a 30% decline in sales.
- Greentech segment continued to decline, down about 20% so far this year.
- The company had to lower its guidance for the year to SEK4.1 billion to SEK4.4 billion.
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Welcome to our Q2 presentation or the first half year presentation. As always, I will try to start with a short summary of how the quarter has -- how we see upon the quarter. First of all, we're disappointed of the sales. I will come back a little bit to why the sales came in at the level it came. But mainly, I would say that it's due to the -- we see delays in the communication area, mainly dependent on that, that the telecom operators has pushed out their investments in infrastructure and that has pulled out some of our demand, especially in this field and that is also reflecting in the rest of the world sales.
On the Western Europe side, the quarter came in fairly well aligned with what we expected. We also see that the profitability came back especially in the Western Europe region. We are at almost at all-time high at 10.5%. The rest of the world is burdened a bit with the lower sales and that we couldn't compensate fully in that way.
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