Half Year 2024 Broedrene A & O Johansen A/S Earnings Call Transcript
Key Points
- Brodrene A & O Johansen AS (OCSE:AOJ B) reported a positive growth of 2.8% in Q2, exceeding expectations of a flat quarter.
- The company has seen continuous B2C growth for the third consecutive quarter, indicating strong consumer interest.
- The acquisition of the Workwear Group has been approved, expanding Brodrene A & O Johansen AS's product offerings and market reach.
- The company is investing in new competencies and expanding its outlets, positioning itself for future growth.
- Brodrene A & O Johansen AS has a strong position in renovation, modernization, and maintenance sectors, which continue to show satisfactory growth.
- Gross margins decreased by 0.8 percentage points due to fierce price competition, particularly in project sales.
- The company faces challenges with lower basket sizes, leading to increased inventory and logistics costs.
- Cost inflation and new legislation are increasing operational costs, impacting profitability.
- There is uncertainty in the market due to geopolitical and macroeconomic tensions, affecting customer investment appetite.
- The integration of recent acquisitions and increased headcount are expected to incur additional costs, impacting short-term financial performance.
Welcome to Broedrene A & O Johansen interim report for Q2 and H1 2024. For the first part of this call, all participants are in a listen only mode and afterwards, there will be a question-and-answer session. (Operator Instructions) This call is being recorded, and I will now hand it over to your speakers. Please begin.
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Good afternoon and welcome to our second quarter and first half of '24 webcast. Let us look at some of the highlights of the second quarter. A & O also saw a positive growth of 2.8%. The growth was 1.9% when adjusting for the impact from Svenska VA-Grossisten. Our expectation was a flat quarter and also slightly higher than expected growth.
Second quarter benefited from the early Easter, adjusted for the number of workdays, the organic like-for-like growth was minus 1.6%. Renovation, modernization and maintenance shows a satisfactory gross. A & O holds a strong
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