Q2 2024 Beijer Ref AB (publ) Earnings Call Transcript
Key Points
- Beijer Ref AB (STU:BRZ0) reported a strong Q2 with a 12% increase in sales and a 13% growth in EBITDA, marking record margins for the company.
- The company achieved positive cash flow in Q2, which is typically not expected until Q3 or Q4, indicating effective inventory management.
- Beijer Ref AB (STU:BRZ0) successfully closed an acquisition in the US and has a pending acquisition in Hungary, which are expected to enhance its market presence.
- The company's private label brands, Sinclair, Inventor, and Freddox, experienced strong double-digit growth, contributing positively to organic growth.
- The US market showed a remarkable 34% growth, supported by strategic acquisitions and favorable weather conditions, with plans to expand further by opening new branches.
- Despite the positive results, the net profit increased by only 2% compared to last year, partly due to higher net financial expenses driven by increased debt and interest rates.
- The EMEA region experienced slower growth in key markets like France, UK, and the Netherlands due to unfavorable weather conditions.
- The company's effective tax rate stood at 24%, which could impact net profitability.
- There is uncertainty regarding the full impact of margin initiatives in the APAC region, with expectations to reach a double-digit margin business by 2025.
- The transition to new A2L products in the US market is expected to have a limited impact in 2024, with more significant effects anticipated in 2025.
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Christopher and Joel here. Welcome to our Q2, and thanks for calling in. So we will move over to the next slide. So Beijer Ref, I think there is no new say, really. We continue to grow as you can see. We're now in 45 markets around the globe, which we will come back a little bit later on, because it's giving us quite a nice balanced view on the world being so many different places come forward.
So moving into the next slide, highlights for Q2. I would say a very good quarter, Beijer Ref in almost all categories. We're coming back to a nice organic growth after three quarters on the negative side and also related to, as we said, the energy situation in Europe a couple of years ago. So they are coming in as expected. Acquisition continues to drive very good value for us and they continue to develop well. We continue to have a good pipeline there, so very nice development for us.
If you put that all together and our sales grew 12% in the quarter, which we're very happy
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