Q3 2024 NCAB Group AB (publ) Earnings Call Transcript
Key Points
- NCAB Group AB (LTS:0AAQ) maintains good gross margins despite lower sales, with a stable gross margin of 36.4%.
- The company has a strong operational cash flow of SEK190 million, indicating robust financial health.
- NCAB Group AB (LTS:0AAQ) continues to expand through acquisitions, with four new acquisitions announced in the latest quarter.
- The company shows growth in North America and East segments, with North America net sales up 10% and East order intake up 10%.
- NCAB Group AB (LTS:0AAQ) is focused on high-tech niches, adding value and technical support, which helps outperform the market in challenging conditions.
- Demand in Europe remains soft, particularly in Germany, impacting overall sales performance.
- Net sales decreased by 11% compared to the previous year, reflecting a challenging market environment.
- EBITA decreased by 33% due to lower volumes and a one-off earnout impact, affecting profitability.
- The company faces weak demand in sectors like green energy, with low activity in EV charging and heat pumps.
- Gross margin decreased by 150 basis points from Q2, influenced by lower volumes and FX effects.
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Good morning and welcome to our Q3 presentation. My name is Peter Kruk and I'm very happy today to have Timothy Benjamin join us as our new CFO. Happy to be here. Thank you.
Starting up a little bit of background about NCAB is a company focused on printed circuit boards and it's the product you see to the far left. The basics and the foundation for all electronic products.
We are focused on serving high mix low volume industrial segments and our customers will then mount semiconductor products, microprocessors to create the intelligence in these products.
Important to remember is that all of our products are bespoke so unique to the end product they go into and no standard components.
As a company, we are focused on serving printed circuit boards for demanding customers delivering on time to them with zero defects produced, sustainably at the lowest overall total cost for our customers even if we may not be the lowest in the price for the product.
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