Interim Report Q2 2024
“Another step towards our margin target“
During the second quarter profitability improved, mainly driven by increased contribution from Laundry.
Sales grew by 3.7% including acquisitions. Organically, sales declined by 0.7%. EBITA amounted to SEK 410m (385) including integration and acquisition related costs for Adventys and TOSEI of SEK 8m, resulting in an EBITA margin of 12.5% (12.2). Comparable EBITA margin, excluding the acquisition and integration related costs, amounted to 12.8%. Order intake was somewhat higher than a year ago.
Sales of Food & Beverage declined organically by 4.3% compared to last year. EBITA was on a similar level as last year, resulting in an EBITA margin of 12.3% (12.2). Sales in our largest market, Europe, were flat, while the US declined by 8% and APAC-MEA by 15%. The sales decline in APAC-MEA was fully attributable to the Middle East. In the US, we continue to see signs of recovery even if the institutional market is still weak. During the quarter the US chains business grew. Order intake continued to be somewhat higher than a year ago in the US, and order intake in Europe was significantly higher.
Sales of Laundry grew by 17% including the acquired TOSEI. Organically, sales increased by 6.7%. Sales to the US were particularly strong. The EBITA margin was 16.5% (16.4). Excluding TOSEI, the EBITA margin was 17.4%. Order intake was somewhat higher than a year ago.
The integration of TOSEI continues in line with plan. TOSEI added sales of SEK 171m in the quarter. The EBITA margin was, as expected in the seasonally weakest quarter for TOSEI, below 10%.
Adventys, a manufacturer of professional induction cooking equipment based in France, was acquired in April. The induction technology will become strategically important for the future of sustainable cooking, given its significantly lower CO₂ emissions compared to gas – which currently is the most used heating system globally.
Operating cash flow after investments amounted to SEK 392m which is somewhat lower than last year (462), partly due to higher capital expenditures related to innovation projects to be launched in the coming years.
Related to sustainability, CO2 emissions from our operations decreased by 56% compared to the first half of last year due to increased use of energy from solar panels and reduced gas consumption.
I am pleased that despite an organic sales decline in Food & Beverage, we have been able to improve both profit and margin, driven by price, lower material costs and improved mix. This demonstrates that the quarter represents another step in the right direction.
Alberto Zanata, President and CEO