First quarter
- Order intake amounted to 527.5 MSEK (617.3).
- Net sales were 598.5 MSEK (623.2).
- EBIT amounted to 74.5 MSEK (85.2).
- EBIT margin was 12.4% (13.7).
- Profit after tax amounted to 51.3 MSEK (55.8).
-
Earnings per share reached
1.78 SEK (1.95). - Free cash flow improved to -8.4 MSEK (-39.3).
-
The
Beijer Electronics business entity decided on a new strategy with a focus on profitable growth. -
The Westermo business entity established a sales office in
Denmark .
Comments from CEO
"The development in the first quarter of 2024 shows a sequential improvement for order intake, sales, and earnings. Compared to the previous year, however, Ependion's business was affected by weaker demand for both business entities driven by the uncertainty in the world economy and the high interest rate. With an EBIT margin of 12.4%, I can state that the Group succeeded better in mitigating the negative effects on the bottom line than during the fourth quarter last year.
Ependion's order intake decreased to 528 MSEK for the period. For the Group as well as for the two business entities, order intake was lower than in the first quarter last year, but stronger than in the immediately preceding quarter.
For Westermo, order intake amounted to 310 MSEK, where the train, trackside and energy segments all contributed to stronger order intake than in the fourth quarter. However, the record-breaking first half of 2023 is disturbing the comparison because Westermo's, and also the Group's, largest customer then extended their order horizon, which led to a very high order booking that did not reflect the underlying demand. The business entity's order backlog amounted to a continued strong 906 MSEK at the end of the period, of which just over half refers to deliveries in 2024.
For
The Group's sales for the first quarter amounted to 599 MSEK, which is slightly lower than for the equivalent period last year but stronger than the previous quarter. While Westermo increased invoicing to 364 MSEK,
EBIT for the first quarter of 2024 decreased to 74 MSEK, with an EBIT margin of 12.4%. It is weaker than the comparison period, but clearly better than the fourth quarter last year. Westermo's EBIT increased slightly to 55 MSEK, while the EBIT margin fell to 15.2% mainly as a result of a temporarily poorer product mix in deliveries.
The Group's product development initiatives constitute the engine behind our organic growth ambition, and development expenses accounted for 12.6% of sales during the period. During the quarter, Westermo has launched several new product lines that complement and renew the offering.
The work to integrate sustainability as a natural part of our operations continues, and although there is much left to do, I am pleased that our progress on sustainability issues has increased significantly. During the quarter, we worked on the development of a double materiality assessment at Group level in accordance with the EU's new CSRD regulations, while the business entities' continued with concrete sustainability-related activities. In our Annual and Sustainability report published during this period, we provide examples of how we address these issues.
The beginning of the year has not given us reason to change our outlook for 2024: external factors remain uncertain, and we see a subdued demand because of weaker economic conditions. In the short term, the lower order intake rate at Westermo over the past three quarters has led to a weaker order backlog for the second quarter. While selectively making forward-looking investments, both business entities are working to increase efficiency and adjust costs to the volume development. Our positive outlook on the long-term growth opportunities in our focus segments remains unchanged, as the demand for our products and solutions is driven by strong global trends such as digitalization and the green transition."
Invitation to presentation of the report
Today, a conference call will be held for press and analysts, where President and CEO
Time: Wednesday, April 24,
To participate in the conference please dial:
From SE: +46(0) 0200 899 189
From
To access the presentation please use this link:
http://momentum.adobeconnect.com/ependionq12024report/
The report and the presentation will be available at the company's website www.ependion.com. A recording of the conference call will also be available here after the event.
Welcome to join!
This disclosure contains information that
For more information please contact:
President and CEO,
Executive VP and CFO
https://news.cision.com/ependion-ab/r/interim-report-january-march-2024-continued-focus-on-the-future-in-a-cautious-market,c3966633
https://mb.cision.com/Main/668/3966633/2755060.pdf
(c) 2024 Cision. All rights reserved., source