Q1 2025 Lindab International AB Earnings Call Transcript
Key Points
- Lindab International AB (FRA:L5E) achieved the highest ever sales for ventilation systems in the first quarter, driven by acquisitions.
- The company reported resilience in operating profit, with increased turnover and an improved gross margin despite challenging market conditions.
- Cost reduction measures are progressing well, with 75% of the expected SEK120 million annualized savings already realized.
- The company is actively pursuing value-enhancing acquisitions, having acquired 29 companies since 2020, adding over SEK4 billion in sales.
- Lindab's focus on operational efficiency and pricing stability has helped maintain or gain market share in a challenging environment.
- Lindab International AB (FRA:L5E) has experienced more than two years of negative organic growth.
- The relocation of a factory in Sweden led to a reduction in sales of approximately SEK50 million during the quarter.
- Profile Systems' revenue fell by 4% due to the factory relocation and poor performance in Eastern Europe.
- The company is exiting the Eastern European market for Profile Systems due to poor profitability.
- The German market remains challenging, with a slower expected recovery compared to other regions.
Good morning and welcome. I'm Ola Ringdahl, President and CEO of Linda Group, and next to me is our CEO Lindab Group. On this call, we will present our results for the first quarter of 2025. We will also look at our focus areas before we are ready to take your questions.
Let's start with some highlights. Thanks to acquisitions, sales for ventilation systems were the highest ever for the first quarter. The market situation remains challenging in several key countries, and Lindab has now experienced more than two years of negative organic growth.
However, I'm pleased to report that our operating profit showed resilience in the quarter and that we were able to deliver both increased turnover and an improved cross margin. The first quarter was characterized by uncertainty in the global economy and the risk of increasing trade conflicts. However, we don't see any immediate impact on Lindab.
Our previously announced profitability measures are progressing according to plan. Let's now move on to look at our
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