Q2 2025 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (OHEL:BOREO) reported a strong organic sales growth of 19% in the second quarter, with 17% being organic.
- The company successfully issued a EUR10 million convertible hybrid bond, improving its leverage ratio significantly to 2.3x.
- Boreo Oyj completed strategic acquisitions, including Spet Electro AS in Estonia and Elephant distiller activities in Finland and the Baltics, enhancing its market presence.
- The order books remained stable, providing visibility and certainty for trading in the coming months.
- The company has seen positive developments from strategic actions taken over the past 1.5 to 2 years, including reducing working capital and generating cash flow.
- Operational EBIT was below last year's levels due to higher fixed costs and accounting adjustments.
- Cash flow was negative in Q2, primarily due to increased receivables from strong sales growth towards the end of the quarter.
- The longer-term outlook remains uncertain due to global economic conditions, affecting visibility beyond the coming months.
- The electronics business area faced mixed performance, with some companies experiencing lower margins and increased fixed costs.
- The construction-related and industrial businesses are still facing challenging market conditions, impacting profitability.
Good morning from Vantaa from the Boreo headquarter. Welcome to this webcast session where myself, Kari Nerg and our CFO Jesse Petaejae will discuss the second quarter 25 highlights of Boreo PLC.
Agenda is as normal. I will discuss the key financial and strategic highlights of the second quarter and the first half of the year and then, I will dig into further numbers and business area specific forms. If you have any questions, please use the Q&A tool made available.
Starting off with a key commentary on the second quarter. First from a financial point of view, we continue to grow now for a third consecutive quarter so strong organic sales growth of 19% of which 17%, was organic.
Gross margins remain stable. Now our businesses in the recent quarters. we've been trading at around 30%, gross margin levels on the operational EBIT side of profitability were somewhat below last year, EUR2.2 million, in actual lute terms in the second quarter. Below due to
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