Q3 2024 Arjo AB (publ) Earnings Call Transcript
Key Points
- Arjo AB (ARRJF) reported a 1.5% organic growth in Q3 2024, despite lower-than-expected capital sales in Europe and some other markets.
- The company saw a solid order intake on capital and a good development of its service and rental business, providing stability for future quarters.
- Gross margin improved to 42% in Q3 2024, up from 41.4% in Q3 2023, despite headwinds from lower capital sales and currency effects.
- Operational cash flow for Q3 was SEK437 million, leading to a cash conversion of 102%, aligning with the full-year target of at least 80%.
- North America showed positive growth, with a 2.4% organic increase in Q3, driven by strong performance in Canada and improving trends in the US.
- Capital sales in Europe were lower than expected due to political uncertainty, impacting overall growth.
- Significant negative currency effects contributed to a decrease in adjusted EBIT to SEK164 million from SEK186 million in Q3 2023.
- The company faces continued weaker capital market conditions in Europe, with low visibility expected to persist for several quarters.
- DVT (Deep Vein Thrombosis) continues to be a drag on organic growth due to price pressure and customer losses.
- China experienced an almost dried-up capital project market in Q3, with low activity levels expected to continue.
()- -
(audio in progress) very much and also from our side, welcome to Arjo's Q3 2024 earnings call, where Niclas and myself look forward to give you some details on the Q3 report. Next slide, please.
We'll start with a business update from Q3, a financial update, and our outlook for 2024 before we open up for questions. And as always, we intend to keep this call to an hour and be ready by 9:00 AM. Next slide, please.
At the time for the Q2 report, we talked about a slightly unsure situation for capital sales in Europe due to political uncertainty in some of our major markets. This uncertainty has resulted in lower-than-expected capital sales in Europe in the quarter.
In addition, we saw some unexpected shortfalls in China and Japan also on capital side in the quarter. And in total, we, therefore, report only a 1.5% organic growth in the quarter, which is around 2 to 2.5 percentage points lower than our expectations that we had when we spoke last time in the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
