Q2 2024 Scandi Standard AB (publ) Earnings Call Transcript
Key Points
- Scandi Standard AB (LTS:0QVR) reported a strong volume and profit growth in Q2 2024, with a 3% increase in volumes and a 5% increase in EBIT to SEK127 million.
- The company has improved its EBIT margin from 3.5% to 3.8% in the quarter, driven by strong performance in the Ready-to-cook segment.
- Scandi Standard AB (LTS:0QVR) has a strong balance sheet and positive operating cash flow, despite the impact of acquisitions and dividend payouts.
- The company is well-positioned to deliver on its financial targets, aiming for an EBIT margin above 6% by 2027.
- Scandi Standard AB (LTS:0QVR) has seen a significant improvement in animal welfare metrics, particularly in Ireland, with better foot pad scores and reduced antibiotic use.
- Net cash flow was negatively impacted by the acquisition of Jæren and dividend payouts.
- The Ready-to-eat segment experienced an 11% decline in net sales and a decrease in EBIT from SEK59 million to SEK38 million, partly due to the loss of contracts in Central Europe.
- There was a negative development in personnel injuries, driven by an ammonia leak incident in Denmark.
- The company faces uncertainties in feed prices, which could lead to further volatility in the market.
- Scandi Standard AB (LTS:0QVR) reported a decrease in net income by 3% to SEK71 million in the quarter, despite a strong first half of the year.
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So let's start the presentation. And good morning, everyone, and welcome to this presentation on Scandi Standard's results for Q2 2024. My name is Jonas Tunestål, and I'm the CEO and Managing Director of Scandi Standard. With me, I have Fredrik Sylwan, our CFO and I'm pleased to have him by my side today. I'm also glad to report a strong volume and profit growth in the quarter.
Next slide, please. We see a strong demand at slightly lower prices. We have increased volumes with 3% in the quarter. We have increased EBIT with 5% to SEK127 million compared to SEK121 million last year. And we have also improved the margin from 3.5% to 3.8% in the quarter.
The improvement was driven by a strong progress in Ready-to-cook. We're also seeing improved sequential performance in Ready-to-eat. And in the Ingredients business, we have a continued downwards normalization in the rendering prices. We have a strong balance sheet and a positive operating cash flow. Net cash flow
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