Q2 2025 Granges AB Earnings Call Transcript
Key Points
- Granges AB (FRA:9GR) experienced a 22% increase in sales volume, driven by market share gains across all regions, particularly in Asia due to the new facility in Shandong.
- The company achieved strong cash flow thanks to effective working capital control and modest capital expenditures.
- Granges AB reported a 5% growth in operating profit in constant currency, despite facing currency translation effects.
- The company demonstrated strong sustainability performance, achieving record high recycling rates and a low carbon footprint.
- Granges AB plans to focus on utilization and optimization of existing capacity, with low capital expenditure expected in the next two years, enhancing cash flow potential.
- Adjusted operating profit decreased by SEK35 million to SEK436 million, impacted by a SEK58 million negative currency effect.
- Operational issues in Europe limited deliveries, resulting in only a 1% sales volume growth in the region.
- Higher costs for aluminum scrap and negative timing effects on European metal premiums affected profitability.
- The company faced margin pressure due to increased aluminum and scrap prices, although this was offset by sales volume and productivity improvements.
- Currency effects, particularly the strengthening of the SEK against the US dollar and CNY, negatively impacted earnings.
Good morning ladies and gentlemen and welcome to this second quarter earnings call for Greni. My name is Jörgen Rosengren, Gränges' CEO, and I'm here with Oskar Hellstrom, our CFO, and Sara Lander Hyléen, Vice President for Communications and Investor Relations, and we'll be taking you through this presentation today.
The second quarter was characterized by strong growth and very good cash flow. Starting with the growth, then our sales volume increased by 22%. And that was driven by market share gains in in fact in all regions, but most noticeably in Asia where the very strong market share gains were enabled by the new facility that we have now acquired and ramped up in the Shandong province.
The adjusted operating profit was SEK436 million compared to SEK471 million last year. On the good side, we had, a strong contribution from the combination of volume, price increases and productivity, and that contribution offset, certain negative effects in scrap and metal premium pricing.
So in total, we had in
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