Q2 2024 NCAB Group AB (publ) Earnings Call Transcript
Key Points
- NCAB Group AB (STU:XB1) maintained a healthy gross margin of 38.5%, up from 36.4% last year.
- The company secured four new acquisitions, expanding its footprint in Belgium, Switzerland, Austria, and Italy.
- Order intake in North America and East regions showed positive growth, with notable large projects in North America.
- The company has a strong operating cash flow of SEK101 million, despite a decrease from SEK152 million last year.
- NCAB Group AB (STU:XB1) added an extra credit facility of SEK500 million to support further M&A activities.
- Net sales decreased by 12% year-over-year to SEK935 million, with an organic decline of 15%.
- The European market, especially Germany, showed weak demand, significantly impacting overall performance.
- EBITA margin dropped to 12.9% due to lower sales and nonrecurring costs.
- The company faced a 20% decrease in net sales in Europe, with a comparable unit decrease of 22% in SEK and 23% in USD.
- Implementation of a new IT system and a biyearly employee conference resulted in higher one-time costs, impacting EBITA.
()- -
Good morning. Thank you. So speaking today will be myself and Anders Forsén, accompanied by Gunilla Ãhman.
If we start by summing up our second quarter, we can see that the market recovery has been slower than we have anticipated. I think notably, we have seen a weak demand in Europe and especially Germany, as I think we've all seen from macro numbers on Ifo Index, et cetera, that the German manufacturing industry has done worse than expected, and that has also impacted our business.
Nordics has performed with mixed performance with some parts have been benefiting from defense growth, but we've also seen lower activity in areas of construction or energy sectors.
In North America and East, however, we start -- we continue to show progress with order intake growing and we have also landed some nice larger projects, notably in North America, which further helps the growth trend in orders there.
Overall, despite demand being lower than anticipated,
| 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
