Q2 2024 Loomis AB Earnings Call Transcript
Key Points
- Loomis AB (LOIMF) reported a record quarter in terms of both revenue and operating income, with revenues exceeding SEK7.6 billion.
- The company achieved an organic growth of 7%, driven by strong demand for cash handling automated solutions, particularly in the US and Europe.
- Operating margin increased to 11.6%, with significant improvements in both the US and European segments.
- Loomis AB (LOIMF) returned over SEK1 billion to shareholders through dividends and share repurchase programs, demonstrating a strong commitment to shareholder value.
- The company is making progress on sustainability initiatives, including a reduction in carbon emissions and a commitment to science-based targets for emission reductions.
- Currency rate changes negatively impacted revenue due to hyperinflation currencies.
- The international business line continues to face cyclical headwinds, with a decline in performance.
- Additional restructuring charges were booked in the quarter, indicating ongoing challenges in optimizing operations.
- The Swedish market recorded negative organic development, with potential impacts from the ending Bankomat contract.
- Increased interest rates have led to a rise in net financial items, affecting overall financial performance.
Thank you very much. Good morning, everyone, and welcome to the second quarter presentation for Loomis. My name is Aritz Larrea, and I'm the CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby; and Jenny Boström, our Head of Sustainability and Investor Relations.
I will begin by giving a brief review of our business performance in the second quarter and an overview of our results before taking questions. Let's start the presentation by turning to slide number 2. We had a strong -- we had a record quarter in terms of both revenue and operating income.
We achieved revenues above SEK7.6 billion with growth across our three segments and most business lines. Acquisitions had a positive impact on our revenue, while the changes in currency rates had a negative impact due to hyperinflation currencies.
We achieved an organic growth of 7% despite continued cyclical headwinds in international business line. The demand for cash handling automated solutions continues to be high, and we have had double digit
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