Q2 2024 Storskogen Group AB (publ) Earnings Call Transcript
Key Points
- Storskogen Group AB (FRA:0VK) reported positive organic sales growth of 2% in the second quarter, indicating a recovery in business performance.
- The company successfully refinanced part of its bonds maturing in 2025 at significantly better terms, improving its financial position.
- Strategic divestment of nine business units has enhanced profitability and allowed the company to focus on areas with higher growth potential.
- Operational efficiency measures are yielding positive effects, with improved margins and strong order intake in the Industry business area.
- The company maintains a strong cash flow, with a cash conversion rate above 100% for the past four consecutive quarters, indicating effective cash management.
- Net sales decreased by 2% to SEK9.2 billion, impacted by divestments and a challenging market environment.
- The services business area experienced a 7% decrease in net sales, primarily due to divestments, affecting overall performance.
- Demand remained muted for companies with exposure to construction and end consumers, impacting the Trade business area.
- The effective tax rate was relatively high at 28.5%, which could affect net profitability.
- Interest-bearing leverage ratio increased to 2.7 times, indicating a higher level of debt relative to earnings compared to a year ago.
()- -
Good morning and welcome to the presentation of Storskogen's results for the second-quarter of '24. I'm Christer Hansson, the CEO of Storskogen, joined today by our CFO, Lena Glader. During the last quarterly presentation, I was three months into my role as an interim CEO. As of July 1, I'm pleased to announce my transition to a permanent position. When I took on this role, I did so with a clear objective to drive earnings growth. Our performance this quarter indicates that we are on the right track, which I look forward to shedding further light on along with Lena Glader.
So let's begin with an overview of Storskogen before we take a closer look at the quarter. Storskogen is a diversified international business group with sales of about SEK35 billion over the last 12 months and with an adjusted EBITA of SEK3 billion spread across our three business unit areas. I'm pleased to announce that Asa Murphy has also moved from her interim role to become the permanent Head of Business Area
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
