illerstorp 22nd of April 2024, 12:30 CET
JANUARY - MARCH
- Order intake in the quarter increased by 3 percent compared with the same period last year and amounted to 72,3 (69,9) MEUR. Adjusted for currency and acquisitions the order intake decreased by 7 percent.
- Sales in the quarter increased by 5 percent compared with the same period last year and amounted to 70,9 (67,8) MEUR. Adjusted for currency and acquisitions sales decreased by 6 percent.
- Operating profit before amortizations (EBITA) decreased to 11,0 (12,7) MEUR.
- Operating margin before amortizations (EBITA margin) decreased to 15,5 (18,7) percent.
- Financial net was -1,3 (-0,6) MEUR.
- Profit after tax decreased to 6,7 (8,9) MEUR.
- Adjusted earnings per share after dilution amounted to 0,13 (0,16) EUR.
- Earnings per share after dilution amounted to 0,11 (0,15) EUR.
- Martin Nyström starts his role as the new CEO on the 1st of June 2024
CEO COMMENTS
The first quarter of 2024 can be reasonably described as a continuation of the fourth quarter, with the exception that the result has softened. Order intake had a slow start at the turn of the year, but has gradually improved during the period. In total, we have an increase of 3 percent, but excluding our newly acquired company Garantell, there is an organic decrease in the quarter of 7 percent. This is mainly attributed to a negative impact on demand in the Nordics due to the declining construction economy and the fact that the expected increase in orders from the automotive industry in the USA did not arrive as planned. We are confident that we have not lost market share, but that it is simply a matter of timing as to when future demand will increase and orders will be placed. Demand within automated warehouses has continued at a reduced level during the period. Similarly to the fourth quarter, many customers are cautious and have postponed major investments until the interest rate situation is more favourable. In summary, most customer segments have continued stable development during the quarter, with the exception of a continued weakened North American market in automotive and a generally continued lower activity in the automated warehouse segment. Order intake from automotive in Europe was again high this quarter and more projects are in the pipeline.
From a geographic perspective, we note during the quarter a stable order intake in Continental Europe, improvements in the UK and New markets compared to 2023.
Invoicing is 5 percent higher than the previous year, but excluding newly acquired companies, Invoicing was 6 percent lower.
The gross margin, which gradually improved during 2023, is for this quarter at a slightly lower level. This is not due to price changes against the market, but is attributable to lower volume in some producing units, as well as the closure of a unit in Poland, where we have now consolidated operations in a new factory outside Poznan. This closure means that we will reduce staffing by approx. 25 people from April 1. In addition to one-off costs for this closure, we also started our new factory in China in the quarter, which also entailed certain start-up costs. Excluding these costs, the gross profit margin is broadly in line with the group's target.
The company Garantell, acquired towards the end of 2023, has continued a healthy development despite the lower demand in the Nordics for basement storage and generally for shelf projects. We were aware of the company's exposure to these markets, so this does not come as a surprise and does not affect our long-term positive view of the company's potential.
For the above reasons, the EBITA margin is lower for the quarter. We have also noted a higher than normal cost of sales during the quarter, based on high activity in exhibitions and marketing. In absolute terms, EBITA is 11,0 MEUR compared to 12,7 MEUR the previous year. The EBITA margin in the quarter amounts to 15,5 percent compared to 18,7 percent the previous year. Excluding the one-off costs mentioned above, the operating margin (EBITA) would have been approximately 17 percent.
Cash flow has been low during the first quarter but is expected to improve during the year. Acquisition interest remains high.
With these comments on the first quarter, I would like to wish my successor, Martin Nyström, the best of luck.
Many thanks to all readers for their interest over the past years!
Thomas Widstrand, President and CEO
TELEPHONE CONFERENCE
Invitation to presentation of the latest quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 22nd of April 2024 at 16:30 CET. The conference will be held in English. For more information, please refer to
https://www.troax.com/investors/press-releases/
This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014). The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 22nd of April 2024.
About Troax
Troax is the leading global supplier of indoor perimeter protection ("metal-based mesh panel solutions") for the market segments: Machine guarding, Warehouse partitioning and Property Protection. Troax develops high quality and innovative safety solutions to protect people, property and processes.
Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation with a strong sales force and efficient logistics setup, enabling local presence and short delivery times in 45 countries.
In 2023 Troax net sales amounted to around 264 MEUR and the number of employees amounted to about 1 200 persons at the end of 2023. The Company's head office is located in Hillerstorp, Sweden.
