Q2 2024 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (STU:YKKA) restored profitability to historical levels with a 7% operational EBIT margin despite sales pressure.
- Cost-saving initiatives are on track, targeting a minimum of EUR 1 million annual savings, contributing positively to results.
- Positive developments in certain business segments, such as F&B and Filterit, with stable outlooks and improved performance.
- Gross margin improvements, particularly in the technical trade division, due to a favorable sales mix and effective management.
- Strong operational cash flow management, with EUR 12.1 million generated over the last 12 months, despite market challenges.
- Sales continued to decline, particularly in the construction business, with a significant impact on overall revenue.
- Leverage remains high at 2.8x, with pressure from hybrid instruments affecting cash flow, necessitating deleveraging efforts.
- Market outlook remains challenging, with no significant improvement expected in the latter part of 2024.
- Operational cash flow in Q2 was negative by EUR 1.9 million, primarily due to a decrease in accounts payable.
- Fixed costs, although reduced, are still impacted by lower sales, with indirect cost ratios increasing due to top-line declines.
Good morning, and welcome to the trading update of Boreo PLC for the second quarter of 2024. Before we head off to the traditional presentation, note to inform and recap basically the changes that we announced last Friday. So we have appointed following the information from June, Aku departing and leaving the company later this autumn, we have we have appointed Jesse Petaja as our -- who has headed our M&A practice since year '21, and in charge of or co-headed our technical trade division during the last months. He is appointed as the new CFO from September 1 onwards.
So I would like to take this opportunity to thank Aku for the good service and I wish him all the best for the future. Aku has had a great role in the last four years. He joined the company in 2020 when the firm was still Yleiselektroniikka. And I think we had at that point of time, seven or eight companies. So what has happened since and let's wish, and we all wish Aku the best for the future.
With that said, we continue to do the traditional items.
So as normal
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