Q2 2025 Arjo AB (publ) Earnings Call Transcript
Key Points
- Arjo AB (FRA:A39) reported a 3.0% organic net sales growth in Q2 2025, supported by a significantly stronger order intake.
- The North America business, particularly the US, showed double-digit organic growth, driven by strong demand across product categories.
- Several European countries, including France, Germany, and Italy, experienced good demand and strong organic net sales growth.
- The company has been successful in implementing cost efficiency measures, which are beginning to show positive effects.
- Arjo AB (FRA:A39) maintains a strong order book, indicating a promising outlook for the second half of 2025.
- Global sales were held back due to difficult comparisons with the previous year, particularly in the UK, which experienced weaker-than-expected sales.
- Gross margin slightly decreased to 43.4% from 43.6% last year, impacted by currency and US tariff headwinds.
- Adjusted EBITDA decreased to SEK475 million from SEK496 million in Q2 2024, primarily due to currency and US tariff headwinds.
- Operating cash flow was SEK205 million, down from SEK344 million in Q2 2024, due to a buildup in working capital and lower EBIT.
- The company faced a temporary cash flow impact of SEK50 million due to a VAT settlement, affecting cash conversion rates.
Welcome to the Arjo Q2 presentation for 2025. (Operator Instructions) Now, I will hand the conference over to Interim President and CEO, Niclas Sjosward; and Interim CFO, Christofer Carlson.
Please go ahead.
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Thank you, and good morning to everyone, and welcome to Arjo's quarter two 2025 Earnings Call. With me here today, I have, as you heard, Christofer Carlsson, our interim CFO. We will give you some details on the quarter two report that we released an hour ago. And our -- dialogues as usual, includes a summary of activities and results from quarter two, the balance sheet items and the outlook for 2025, before we open up for questions. We intend, as always, to keep this call to an hour and finish no later than 9 CET.
Next slide, please. We closed the quarter in a solid way and could see how demand continued in the quarter with organic net sales growth in line with our targeted range. We had continued strong
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