Q2 2025 Nolato AB Earnings Call Transcript

Jul 18, 2025 / 06:45AM GMT
Release Date Price: kr58

Key Points

Positve
  • Nolato AB (FRA:NBF) reported a currency-adjusted organic growth of 4% in sales, reaching nearly SEK2.4 billion.
  • The EBITA margin increased by 1.6 percentage points to 11.6%, with operating profit rising by 13% to SEK277 million.
  • The Medical Solutions business area saw a 5% increase in sales, adjusted for currency, and an operating profit increase to SEK170 million.
  • The company is expanding its operations in Hungary and establishing new operations in Malaysia to support growth in Asia.
  • Earnings per share increased to SEK0.79 from SEK0.63 the previous year, indicating improved profitability.
Negative
  • Nolato AB (FRA:NBF) faced strong currency headwinds, impacting financial performance.
  • The automotive market within the Engineered Solutions business area is experiencing weaker market conditions.
  • High capital expenditures, particularly for expansion in Hungary, resulted in a decrease in cash flow after investments to SEK128 million from SEK336 million.
  • The company is still working on improving margins in the US, which are currently below the rest of the segment.
  • Overcapacity issues in China have not yet been fully resolved, affecting utilization rates.
Operator

Good morning, and welcome to today's presentation with Nolato. With us presenting today, we have the CEO, Christer Wahlquist; and CFO, Per-Ola Holmstrom. (Operator Instructions)

And with that said, please go ahead with your presentation.

Christer Wahlquist
Nolato AB - President, Chief Executive Officer

Okay. good morning, everybody, and welcome to the presentation of the second quarter for Nolato Group.

Turning to page 2 in the presentation and the summary of Nolato Group. We had, during this quarter, sales that amounted to just shy of SEK2.4 billion, which then gives a currency-adjusted organic growth of 4%. We saw growth in both business areas.

We saw a sharp increase of our EBITA margin, increasing 1.6 percentage points to 11.6% and creating an increase of our operating profit by 13% to SEK277 million despite a strong currency headwind.

Turning to page 3. Summarizing up the Nolato Group and the two business areas. So the group is built up based on two distinct business areas with Medical Solutions being the largest

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