Release Date: July 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ITAB Shop Concept AB (FRA:29I0, Financial) successfully completed a major acquisition of competitor HMY, significantly expanding its market presence and doubling its size.
- The company confirmed synergies from the acquisition, estimated at EUR30 million, which are expected to enhance profitability.
- ITAB Shop Concept AB (FRA:29I0) reported an increase in EBIT for the legacy ITAB operations, indicating strong performance despite market challenges.
- The company has a strong customer base with long-term relationships, which provides stability and recurring business.
- There is a high market interest in ITAB's technological solutions, such as loss prevention and operational efficiency solutions, which continue to grow.
Negative Points
- The company experienced a 40% decrease in adjusted EBIT for Q2 2025 compared to pro forma figures, indicating challenges in maintaining profitability post-acquisition.
- Sales in Northern Europe declined by 20%, driven by project delays and customer hesitancy due to macroeconomic uncertainties.
- Operational issues in France have negatively impacted performance, requiring corrective measures and management changes.
- The integration of HMY has led to increased financial expenses, including currency effects and hyperinflationary accounting impacts.
- ITAB Shop Concept AB (FRA:29I0) faces a challenging market environment with hesitancy from customers due to economic uncertainties, affecting sales momentum.
Q & A Highlights
Q: How do you view the comparability of Q2 results for ITAB and HMY, and what are your expectations for the second half of the year?
A: Andreas Elgaard, CEO, noted that Q2 was an all-time high for both ITAB and HMY, which affects comparability. He emphasized that the project nature of their business means fluctuations are expected, but they aim for more stability going forward. The integration of HMY is progressing well, and they remain optimistic about future synergies.
Q: Can you elaborate on the operational issues in France and the corrective measures being taken?
A: Andreas Elgaard explained that operational issues in France were due to incorrect cost assumptions in new customer agreements and quality complications with new customers. Corrective measures have been implemented, and improvements are already visible. The focus is on aligning operations and improving teamwork.
Q: What are the expectations for cross-selling activities between Legacy ITAB and HMY?
A: Cross-selling has begun, with ITAB's lighting products being sold to HMY's existing customers. There is also a shift from competing products to ITAB's gates. The company is educating teams and expects increased sales from these efforts, although the sales process can be lengthy.
Q: How are financial expenses being impacted, and what is the outlook?
A: Andreas Helmersson, Acting CFO, stated that financial expenses are impacted by the acquisition, hyperinflation, and currency effects. These are in line with expectations, and as one-off effects settle, expenses should decrease.
Q: Are there any significant orders expected in the near term, and how does the current market environment affect sales?
A: Andreas Elgaard mentioned that while they do not provide forecasts, the market is experiencing hesitation due to economic uncertainties. However, if stability returns, it could lead to increased investments from retailers. The company remains focused on factors within their control.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
