Q1 2025 Loomis AB Earnings Call Transcript
Key Points
- Loomis AB (LOIMF) reported a solid start to the year with organic revenue growth of 4.4% in Q1 2025.
- The company achieved revenues above SEK7.6 billion, with notable performance in the International business line and double-digit growth in Automated Solutions and FX business lines.
- Operating margin improved to 11.6%, up from 10.4% in the prior year, driven by a favorable business mix and increased efficiency.
- Operating cash flow was exceptionally strong, representing 112% of EBITA for the quarter, with a cash conversion rate of 124% over the past 12 months.
- Loomis AB (LOIMF) announced the acquisition of Burroughs in the US, which aligns with their strategy to grow through value-adding acquisitions and strengthens their services in ATM and Automated Solutions.
- Revenue from Automated Solutions in Europe declined slightly compared to the prior year due to strong performance from CIMA in the same period last year.
- Changes in exchange rates negatively impacted total growth, particularly affecting the European and Latin American segments.
- The company is facing ongoing restructuring costs in Europe and Latin America, with expectations of higher restructuring costs in 2025 compared to 2024.
- The introduction of tariffs has temporarily paused export plans for CIMA to the US, creating uncertainty around future growth initiatives.
- The acquisition of Burroughs is initially expected to be dilutive to group margins, although it is anticipated to be margin accretive over time.
Ladies and gentlemen, welcome to the Loomis AB Q1 2025 Report Conference Call. I am Moira, cos call operator.(Operator Instructions) At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead.
Thank you very much. Good morning, everyone, and welcome to the first 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 Bostrom, our Head of Sustainability and Investor Relations. I'll start by providing a quick summary of our Q1 performance before taking questions.
Let's start the presentation by turning to Slide 2. Loomis had a solid start to the year with organic revenue growth of 4.4% in the first quarter. We achieved revenues above SEK7.6 billion, with growth across our three reporting segments. Notably, our International business line performed exceptionally well, and we also saw double-digit growth in our Automated Solutions and FX business lines. Acquisitions
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