Q3 2024 Ratos AB Earnings Call Transcript
Key Points
- Ratos AB (RTOBF) reported strong cash flows with a cash conversion rate of 167%, indicating efficient cash management.
- The merger of Knightec and Semcon is progressing well, expected to create a leading R&D partner for product and digital solutions.
- HL Display, a subsidiary, has shown impressive financial performance with a 34% average EBITA CAGR growth over seven years.
- The order backlog and order intake growth remain strong, suggesting a healthy pipeline for future projects.
- The company has successfully implemented inventory reduction programs, particularly in the consumer segment, leading to improved working capital management.
- Net sales were down by 6% with a negative organic growth of 4%, partly due to substantial currency effects.
- The construction segment faced a temporary downturn with net sales down 14%, attributed to project phasing issues.
- The technical consulting market is experiencing a weaker demand, impacting growth prospects.
- The plantation segment is undergoing reconstruction, resulting in store closures and a downsizing of operations.
- There were significant one-time costs related to restructuring efforts in various segments, affecting overall profitability.
Good morning and welcome to this presentation covering the third quarter in Ratos for 2024.
I am joined by Jonas Wiström, our President and CEO and Jonas Ãgrup our CFO here in the studio and they will guide us through the results shortly starting this quarter. We will also give you a slightly deeper understanding of our individual subsidiaries in connection to the quarterly report. To do that, we will invite guests to our webcast starting today.
First up is the HL display, CEO Ban Bori Man who will join us later on to give us a little bit more insight on H L's recent development and the exciting growth journey.
In the end of the presentation, you will be able to raise your questions in our Q&A session and this webcast is also recorded. So you will find it afterwards at RATOS.com without further ado, I'll hand over to you, Jonas Wistrom.
Thank you Josephine and thank you everyone for joining this meeting to listen to what I think is a good result for a good
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