Q2 2024 YIT Oyj Earnings Call Transcript
Key Points
- YIT Oyj (YITYY) achieved its transformation program's cost savings target of EUR40 million ahead of schedule.
- The Infrastructure segment significantly increased its profitability, achieving an adjusted operating profit of over 6% for the quarter.
- Apartment sales in Finland have been growing for the fifth consecutive quarter, with a 13% reduction in unsold apartments.
- The company successfully completed a comprehensive multistep financing process, improving the maturity profile of its debt portfolio.
- YIT Oyj (YITYY) released approximately EUR140 million of capital over the last four quarters through its capital release program.
- Quarterly revenue declined to EUR434 million, primarily due to onetime events in the Housing segment.
- The adjusted operating profit decreased to EUR7 million for the quarter, impacted by onetime costs.
- The Housing Finland segment reported a negative result of EUR6 million, with a significant decline in revenue and profitability.
- Onetime costs amounted to EUR49 million, including EUR28 million related to transformation cost savings and EUR19 million from historical project closures in Sweden.
- The Finnish housing market remains weak, with no new start-ups observed and a low supply expected in 2025.
Good morning, everyone, and welcome to YIT's second-quarter 2024 results webcast. My name is Essi Nikitin, and I'm Heading the Investor Relations at YIT. Together with me here are our CEO, Heikki Vuorenmaa; and our CFO, Tuomas Makipeska. At this point, I will hand over to Heikki. Please go ahead.
Thank you, Essi, and welcome all to the webcast also from my behalf. We launched our transformation program February 10, '23. At that time, we expected to reach our savings target by the end of '24. Today, I'm happy to announce that we have already implemented the measures needed to save EUR40 million annually from our operations. The achievement does not mark the end of our effort.
We continue to optimize our operational efficiency to identify further cost savings. Our profit for the second quarter was driven by Infrastructure, Business Premises, and Baltics and CEE performance as the Housing
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