Q2 2025 CTEK AB (publ) Earnings Call Transcript
Key Points
- CTEK AB (OSTO:CTEK) has a strong consumer brand with partnerships with over 50 premium vehicle manufacturers, including Lamborghini.
- The company reported an improved gross margin of 56.3% due to a favorable product mix.
- CTEK AB (OSTO:CTEK) achieved a second consecutive profitable quarter for its professional division at the EBITDA level.
- The company is focusing on expanding its market with new product categories, such as premium boosters and power solutions, expected to significantly impact growth from 2026 onwards.
- CTEK AB (OSTO:CTEK) has a strong financial position with a net debt ratio of 1.8, well below its target of 3 times, allowing for potential M&A opportunities.
- CTEK AB (OSTO:CTEK) experienced a decline in revenue to SEK197 million from SEK212 million in the same quarter last year.
- The professional division saw a 6% organic decrease in volume, primarily due to the cancellation of a contract with General Motors.
- The EBITDA margin for the professional division was lower than expected at 3%, down from 6% in the previous quarter.
- The EVSE segment is experiencing low market activity, impacting overall sales and requiring increased volumes for improved profitability.
- Geographical mix negatively affected gross margins in the consumer segment, with high-margin markets like Australia not performing as strongly as before.
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Thank you very much, operator, and also a warm welcome to the second quarter report review from CTEK. Today's presenter will be myself, and I also have Thom Mathisen, our CFO. And as usually, we will start with some background information about CTEK. CTEK was founded for over 25 years ago by Bengt Wahlqvist, the inventor of the first ever battery charger to use electronic pulse technology, and this revolutionized the market.
We are designing and developing and testing all our products in Sweden. We are putting a lot of efforts to the quality levels and we have about one-third of our employees working in research and development in Falun, Norrköping and Shenzhen. We are also committed to sustainability targets and we are focusing on reducing air freights and make our products more repairable and the use of recycled materials wherever possible.
We are very proud to have more than 50 of the world's most premium vehicle manufacturers as customer where we are building their branded 12-volt chargers.
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