Q1 2025 Fasadgruppen Group AB (publ) Earnings Call Transcript
Key Points
- Fasadgruppen Group AB (FRA:83A) implemented a new, flatter organizational structure and management team, which has been well received.
- The company achieved an adjusted EBITDA of SEK77 million, significantly up from SEK20 million in the same period last year, with a margin increase to 6.5% from 1.9%.
- There was a 4% organic growth in the order backlog, driven mainly by the Swedish entities, marking the first organic improvement since 2022.
- Clearline, a recent acquisition, contributed significantly to the results, with sales of SEK174 million and strong cash flow performance.
- The company saw a total sales increase of 12.2%, despite a 10% organic decline, indicating strong performance in certain segments and geographies.
- Fasadgruppen Group AB (FRA:83A) experienced a 10% organic sales decline in Q1, primarily due to low activity in the new build market.
- The total solutions segment saw a 10% decline, with a 14% organic decrease, affected by lower activity in Britain.
- The company's net debt to adjusted EBITDA ratio remains high at 3.25 times, with a focus on reducing leverage below 2.5.
- Cash flow was negatively impacted by a significant increase in working capital, partly due to project ramp-ups and a delayed payment related to the Clearline acquisition.
- The order backlog margin remained stable, but there are concerns about the impact of lower activity in the new build sector and potential credit risks from bankruptcies in the construction sector.
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Hello and good morning everyone, and welcome to this Q1 call. And here in the room we have our CEO Martin Jacobsson, our Chief Financial Officer Casper Tamm, and the Magnus Blomberg, head of IR. With that being said, I hand over the word to Martin, so please go ahead.
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Thank you, Magnus, and good morning also from me to everyone. I am glad to present the Q1 results for our group today. So let's dive into the presentation. So, first of all, we implemented a new organization here in Q1, a more flatter organization. And partly new group management team as well. And I'm pleased with the development so far, with the organization in place and the new group management team. And been well received throughout the organization.
In the quarter we saw continued, organic sales decline, roughly 10% down, and that was mainly due to the Lone activity, we've
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