VBG Group AB (FRA:KU4)

Q1 2025 VBG Group AB (publ) Earnings Call Transcript

Apr 28, 2025 / 08:30AM GMT

Release Date Price: €25.72 (+2.72%)

Transcript

Key Points

Positve

Sales outside Europe and North America increased by 25%, providing a more balanced geographic footprint.
Despite revenue decline, VBG Group AB (FRA:KU4) maintained a solid EBITA margin of 13.1%.
The company made two strategic acquisitions: Italytec in Brazil and Ledson Lights AB, enhancing their market position.
Strong cost control and favorable product mix helped maintain gross margins despite weaker demand.
The Truck and Trailer Equipment division showed signs of recovery with a positive sales trend at the end of the quarter.

Negative

Overall revenue declined by 12% compared to the first quarter of 2024, primarily due to challenges in North America and Europe.
The Mobile Thermal Solutions division experienced an 18% sales decrease, impacted by supply chain issues and slow market conditions.
The strengthening of the Swedish krona negatively impacted results by SEK8 million.
Ringfeder Power Transmission division saw an 11% sales decrease, with a weaker product mix affecting EBITA margin.
Cash flow was lower than the comparable quarter last year, partly due to higher working capital tied up in accounts receivables.

Operator

Welcome to the VBG Group Q1 report 2025 presentation. (Operator Instructions) Now, I will hand the conference over to the speakers: CEO, Anders Erken, and CFO, Fredrik Jigneus. Please go ahead.

Anders Erken;publ;President

VBG Group AB;Chief Executive Officer, Director

()- -

Very warm welcome to the VBG Group presentation on the Q1 report 2025. Just a short recap of our decentralized divisional organization from left to right. We have division Truck and Trailer Equipment, mainly active in the, as you know, the Truck and Trailer segment in the European market.

We have, in the middle, our launch the largest division, Mobile Thermal Solutions, active in the HVAC applications for mobile applications and with the main market in North America. Last but not least, our third division linked with the Power Transmission, acting in mechanical power transmission, motion control in several industrial applications.

If we step into the quarter one report, and I will give you a brief summary how we see highlights of

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