Q1 2025 Granges AB Earnings Call Transcript
Key Points
- Granges AB (FRA:9GR) reported a 24% increase in sales volume, driven by new business in Asia and market share gains across all regions.
- The company achieved a 15% increase in EBIT, reaching over SEK400 million, marking the best first quarter result in its history.
- Granges AB experienced positive cash flow in the first quarter, which is unusual due to typical working capital build-up during this period.
- The company successfully offset price pressures through volume growth and improved productivity.
- Granges AB's regionalized strategy has limited the impact of tariffs on its growth and financials, with production localized to each sales region.
- Despite overall profit growth, the adjusted operating profit per tonne decreased by SEK200 due to margin dilution from the new Shandong facility.
- The automotive sector in Granges Americas experienced negative growth, although it is a smaller portion of the business.
- The company faced higher total carbon intensity in the quarter due to less use of recycled material.
- Granges AB anticipates some negative currency translation effects in the second quarter.
- The increase in aluminum prices in the US, driven by import tariffs, has led to higher costs, although these are passed through to customers.
Good morning, ladies and gentlemen, and welcome to this first quarter presentation for 2025 for Granges. My name is Jorgen Rosengren. I'm Granges' President and CEO. And I'm here together with Oskar Hellstrom, our CFO; and Sara Lander Hyléen, our Vice President for Communications and Investor Relations. We'll be taking you through our presentation here first. And after that, there will be an opportunity for Q&A, which the operator will announce.
We had a good first quarter characterized by profitable growth in the turbulent environment. In particular, we're happy with the strong sales volume growth and also profit growth. The sales volume increased, as you can see here, by full 24% which was driven by new business that we've gained in Asia, but actually also market share gains in all of our three regions, quite encouraging. Our EBIT or adjusted operating profit increased 15% to a little over SEK400 million, as you can see here.
And actually, this is the best first quarter result we've recorded in our history so far
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