2024-04-24 14:15:23 ET
Trelleborg AB (publ) (TBABF)
Q1 2024 Earnings Conference Call
April 24, 2024 9:00 AM ET
Company Participants
Peter Nilsson – President and Chief Executive Officer
Fredrik Nilsson – Chief Financial Officer
Christofer Sjögren – Head-Investor Relations
Conference Call Participants
Erik Golrang – SEB
Klas Bergelind – Citi
Timothy Lee – Barclays
Hampus Engellau – Handelsbanken
Douglas Lindahl – DNB Markets
Agnieszka Vilela – Nordea
Presentation
Peter Nilsson
Thank you and welcome again to all of you to this presentation of the Trelleborg Interim Report for the First Quarter of 2024. As already stated, speaking Peter Nilsson, President and CEO of Trelleborg; and also joining me on the call is Fredrik Nilsson, who is the CFO, who will guide us through more the financial part of the presentation; and also on the call is Christofer Sjögren, our Head of Investor Relations, who is also able to support us if there are any questions, which needs his support.
So using the presentation that we have on our web since a few hours, turning to the first page, which is only saying Trelleborg interim report. Turning to Page 2, which is the agenda slide. As usually we listed some highlights from my side and also some comments on the business areas, which are going to be three this time for the first time since in some time. Then financials, Fredrik going to guide you through this and then we're finishing off with the summary and some comments on the outlook for the running quarter and then summing up with the Q&A.
So then turning to Page 3, highlights. We have, let's say, the heading improved margin despite slightly lower sales. Sales came in at SEK8.2 billion, which is let's say down by 5% compared to year ago, which is then reflected as 5% down, reflected organic sales down by minus 3% and we also have a negative structural thing here of minus 2%, which then gets us to this minus 5%. Currency basically no impact in this quarter first time since a few quarters. And then, of course, we note looking at that organic sales, Easter Holiday as all of you is aware, has been – was seen in April last year, in March this year. So that is impacting organic sales by close to 2% in the quarter and primarily then impacting our sealing solutions activity, get back and comment on that.
EBITA ending up at SEK1,490 million which is then let's say corresponding to margin of slightly north of 18%. Still running restructuring in order to continuously improve our structure so that we have, let's say, items affecting comparability in quarter of SEK55 million also relatively strong cash flow in this quarter. As usual, the seasonality means that cash flow in the first quarter always a little bit weaker than the other quarters in the year. But if you compare to a year ago, this is a strong cash flow for Q1, which shows that we have been managing our working capital good, although at least a little bit muted sales – Fredrik will comment on that as well. And as already told, we are for the first time, let's say, also presenting individually Trelleborg Medical Solutions, get back and comment on that. Soft start for medical solutions in a challenging market, but also I will get back and comment on that when we speak about that business area.
We're also happy to sign the agreement to acquire a Baron Group, which is going to be a game changer for medical solutions when we get that into the books. Also to be noted, I mean, beyond the end of the quarter, we finalized the earlier announced MNE acquisition in Korea, which is then strengthening us substantially in seals for the semiconductor industry and we also have signed an agreement to acquire BP-Tech Group as it's called or more used name is called Boldan, which is then a pipe repair business based in Finland by selling globally. So this is kind of the highlights of the quarter....
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Trelleborg AB (publ) (TBABF) Q1 2024 Earnings Call Transcript