Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beijer Alma AB (FRA:6O4, Financial) reported a strong first quarter with a 9% increase in order bookings and an 8% rise in net revenue, reaching almost SEK2 billion.
- The company experienced good growth in the Nordic region, driven by both organic and acquired growth.
- Lesjöfors, a major part of Beijer Alma, saw organic growth in sales and order bookings, contributing positively to the company's performance.
- Beijer Tech reported a 15% increase in order bookings and a 17% rise in net revenue, showcasing strong growth across its business units.
- The company maintains a stable operating margin and has room for future acquisitions, with a net debt to adjusted EBITDA ratio of 2 times.
Negative Points
- The Chassis Springs business within Lesjöfors experienced a slight decrease in sales compared to the previous year, although margins improved slightly.
- Alcomex, an acquisition in Holland, faced challenges due to its connection to the struggling construction market in Europe, negatively impacting the company's performance.
- The company reported an increase in net debt, attributed to recent acquisitions, which could pose a risk if not managed carefully.
- The fire incident in Amminnefors, Finland, although covered by insurance, may have marginal negative effects in the coming quarters.
- The market situation remains unstable, with potential impacts from external factors such as the timing of Easter and general economic conditions in Europe and the US.
Q & A Highlights
Q: Should we expect more focus on organic growth and margin improvements in Lesjöfors, while Beijer Tech focuses on both organic growth and acquisitions?
A: Yes, that's a good conclusion. However, if opportunities arise in Lesjöfors, acquisitions will be considered there as well. But the current trend is as you described. - Johnny Alvarsson, President and CEO
Q: What drove the margin improvement in Chassis Springs despite a slight decline in the quarter?
A: The margin improvement is minor and likely due to a mix of markets and customers. It's not seen as a trend yet. - Johnny Alvarsson, President and CEO
Q: Can we expect better margins at Alcomex in Q2 and a gradual improvement throughout the year?
A: Yes, there are ongoing projects to improve the situation, but some cost reductions are still needed. There will be structural changes on the cost level in the second quarter, likely as a one-off. - Johnny Alvarsson, President and CEO
Q: How is the European business performing, excluding Alcomex?
A: Fairly satisfied with the European business, though there is still room for improvement. Changes have been made, such as reducing dependency on the German market. - Johnny Alvarsson, President and CEO
Q: What is the potential for margin improvements in Lesjöfors, and could there be a portfolio review?
A: Lesjöfors has potential for margin improvements through a more decentralized organization and cost-cutting in some areas. There could be minor spin-offs, but the focus is on improving existing business. - Johnny Alvarsson, President and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
