Q2 2024 Garo AB Earnings Call Transcript
Key Points
- GARO AB (FRA:46GA) has a strong presence in multiple European countries, including Sweden, Norway, Ireland, Finland, Poland, the UK, and Germany, with ongoing expansion into Spain.
- The company has a diverse product portfolio, including e-mobility chargers and electrical distribution products, which accounted for significant portions of sales.
- GARO electrification business area showed improved EBIT margin of 9.2% due to efficiency programs.
- The temporary power product area noted a growth of 12% compared to the previous year.
- Demand outside the Nordic region showed growth, supporting continued investment in Germany and Spain.
- Net sales decreased by 21% compared to the same quarter last year, with significant declines in both GARO electrification and e-mobility sales.
- Operating profit for the quarter was negative SEK4 million, a significant drop from SEK18 million positive in the same quarter last year.
- The e-mobility market recovery is slower than expected, particularly in Sweden, affecting sales and profitability.
- The construction market in Sweden and the Nordic region remains weak, impacting demand for GARO electrification products.
- The company breached its net working capital to sales ratio covenant, although a waiver was obtained.
Welcome, everyone, to the presentation of GARO'S Q2 report 2024. My name is Patrik Andersson, and I'm the CEO of GARO. And with me today, I have Helena Claesson, our CFO, to present the financial performance.
Next slide, please. We will, as usual, start with an introduction of the company; after that, the Q2 report and outlook; and in the end of the presentation, comments on the press release we launched this morning. So let's start with an introduction.
GARO is a company founded in 1939 that develops and manufacture and sell innovative products and systems for electrical installation under own brand in the European markets. Developing products that are in the forefront has always been a significant aspect of our success.
Our focus is in developing user-friendly and safe product with a modern design and long service life. There is market demand for product and solutions to assist in establishing a fossil-free society, in which a growing number of players are becoming conscious to the sustainable impact. This makes
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