Q3 2024 VBG Group AB (publ) Earnings Call Transcript
Key Points
- VBG Group AB (FRA:KU4) demonstrated resilience in softer market conditions by improving efficiency and reducing headcount.
- The company maintained a stable operating cash flow of SEK 153 million, with a return on operating capital nearing 40% over the past 12 months.
- The consolidation of three production facilities in Toronto is expected to yield significant efficiency gains and strengthen the market position of the Mob Climate Control brand.
- Despite a decrease in sales, the company achieved an increased gross margin and maintained a strong financial position with a net cash position of SEK 304 million.
- Ringfeder Power Transmission division showed growth due to the recent acquisition of Rathi Transpower, contributing positively to the division's EBITA.
- Overall sales dropped by 12% in Q3, with an 11% decline when adjusted for currency and acquired volume.
- The Truck and Trailer Equipment division experienced an 11% revenue drop, primarily due to slow sales in the European semi-trailer industry.
- The Mobile Thermal Solutions division saw a 16% revenue decline, with significant drops in the offroad consumer segment and the US bus segment.
- Earnings per share decreased by nearly 29%, amounting to SEK 4.496 per share for the quarter.
- The Ringfeder Power Transmission division faced a slowdown in the mining industry in Brazil and Eastern Europe, impacting sales negatively.
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Welcome to the quarter three interim report on VBD Group, a short introduction to VBD Group and its divisions, truck and trailer equipment acting in the commercial vehicle industry witnessed traffic safety products in the middle. You have a Momo the solution supplies the heating ventilation and air conditioning systems to the bus and offroad segments mainly in the North American market. Ring for the power transmission to the right delivers industrial components in the mechanical power transmission and mechanical damping industry in a wide variety of industrial applications.
Q3 highlights Frederick will, will give you all the necessary details. But let me summarize the quarter.
We saw softening market conditions during quarter three sales dropped by 12% in the quarter. The underlying drop excluding currencies and acquired volume was 11%. So the currency, the strengthening of the Swedish krona comparable to quarter 3, 2023 had almost a 3% impact. For division truck and trailer equipment revenues dropped by 11% currency
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