Q2 2025 Fagerhult Group AB Earnings Call Transcript
Key Points
- Fagerhult Group AB (FRA:2F0) successfully resolved an IT incident at their Whitecroft business in the UK, restoring full operational capacity by June.
- The company reported improvements in gross margins and a reduction in selling and administration expenses by 7% to SEK629 million.
- High M&A activity was noted, with the closing of Trato and the signing of Capelon, both aligning well with the company's strategy and bringing strong customer relationships.
- The order backlog increased by SEK316 million since the start of the year, driven by projects like KSP in Saudi Arabia and contributions from iGuzzini, Fagerhult, and Whitecroft.
- The Premium business area remains the most profitable and stable, contributing to 35% of the group's revenue with a focus on high-quality lighting solutions in Western Europe.
- Fagerhult Group AB (FRA:2F0) experienced a 6.5% organic decline in order intake for the second quarter, reflecting ongoing market volatility.
- Net sales for the group declined by 10.7% when adjusting for currency effects, with a significant financial impact from the IT incident in May.
- The operating results were deemed unsatisfactory, with the current activity levels unable to support a double-digit operating margin.
- Currency headwinds negatively impacted order intake and net sales, averaging SEK31 million per month in the second quarter.
- The Professional and Infrastructure business areas faced challenges, with Professional impacted by the IT incident and Infrastructure needing to improve order intake conversion.
Hi, everyone, and thank you all for joining us today. I'm Niklas Willstrand, Head of Communications here at Fagerhult Group, and it's my pleasure to welcome you to our Q2 2025 results presentation. On the call, we have our President and CEO, Bodil Sonesson; along with our CFO, Michael Wood.
Bodil will begin with a brief overview of our second quarter results, followed by highlights focusing on the premium business area. Michael will then provide a deeper dive into the group's financial performance.
To close, Bodil will summarize the key points before we open the floor for your questions. We start with questions from the conference call participants and then take questions from the webcast. (Operator Instructions) Please note that today's session is being recorded and will be available on our website later today.
With that, I hand over to you, Bodil. Please go ahead.
Thank you very much, Niklas, and
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