Q1 2025 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (FRA:YKK) recorded a 4% organic sales growth in Q1 2025, marking the second consecutive quarter of growth.
- The company achieved a strong gross margin of 32%, contributing to a profitability uplift from €0.6 million last year to €1.3 million.
- The electronics business area showed robust performance with a 10% growth in sales and a doubling of operational EBIT to €1 million.
- Boreo Oyj successfully completed acquisitions, including Spes Electronic AS and Elfa Distrelec, expected to enhance portfolio quality and growth prospects.
- The company has improved its working capital management, resulting in a cash conversion rate of 22% for the quarter.
- There is ongoing uncertainty in the global market due to geopolitical tensions and trade discussions, which could impact future operations.
- The technical trade business area experienced flat sales compared to last year, indicating challenges in market conditions.
- The Baltic countries' operations continue to face a challenging operating environment, impacting performance.
- Boreo Oyj's leverage increased due to the redemption of an old hybrid bond and interest payments, indicating financial pressure.
- The construction sector remains tough, with mixed performance across different regions and businesses.
Good morning and welcome to Boreo Q1 '25 trading update. My name is Kari, and together with our CFO, yes, we will discuss in the next 30 to 45 minutes the events of Q1 '25 and, outlook going forward. Agenda is as quite as normal as usual.
I will discuss first the highlights a bit of longer term trends of the company. Yes, so we then dive deeper into business performance, some of further financials, after that, and then we will recap or finish off with a couple of points on related to the back growth plan we've been working with the next, the last year in the company. As normal, please use the Q&A function if you want to ask any questions and we will then address those at the end of the session.
One highlights, the start of the year has been, very close to and in line with our own expectations. We are, pleased with the fact that now, two, consecutive quarters, we've been able to record, organic growth, during this, during the first quarter, 4%, organic sales
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