#Sweden #Systemair AB #ventilation #Q2 report #Skinnskatteberg

Systemair AB's Interim Report Q2 2024/25

Overview

On December 4, 2024, Systemair AB released its interim report for the second quarter of the financial year 2024/25, covering the period from August to October 2024. Despite a slight decline in net sales, the company reported a positive organic growth, highlighting the resilience of its operations.

Key Financial Metrics

• - Organic Growth: The company experienced an organic growth rate of +2.6 percent, showing a minor decline compared to the previous +5.1 percent.
• - Net Sales: There was a 1.3 percent drop in net sales, bringing the total to SEK 3,146 million, down from SEK 3,186 million. The unfavorable exchange rate contributed to this decrease, impacting revenues by -4.3 percent.
• - Operating Profit (EBIT): Operating profit improved to SEK 347 million, up from SEK 322 million, resulting in an operating margin increase to 11.0 percent from 10.1 percent.
• - Profit After Tax: Profit after tax was reported at SEK 236 million, slightly down from SEK 246 million in the prior year.
• - Earnings per Share: Basic earnings per share were recorded at SEK 1.14, down from SEK 1.18.
• - Cash Flow: The firm reported a cash flow from operating activities of SEK +404 million, which remains robust albeit slightly lower than the previous SEK +433 million.

First Half-Year Performance

For the first half of the 2024 financial year (from May to October), Systemair's organic growth was +1.2 percent, a drop from +7.8 percent last year. Net sales for this period were SEK 6,257 million, reflecting a 1.6 percent decrease from SEK 6,361 million, largely influenced by currency fluctuations which affected sales negatively by -3.2 percent.

Leadership Commentary

Roland Kasper, the President and CEO of Systemair, commented on these results, emphasizing effective management strategies and a strong product mix. He noted that recent cost adjustments have resulted in a stable gross margin and reinforced operating margins for the quarter. He stated, "Our factories have enjoyed high occupancy levels, and apart from Western Europe, we’ve observed organic growth across all regions. The stability in various markets outside of Western Europe and the Nordics is a promising sign."

Upcoming Engagements

Systemair will host a press and analyst meeting at 9:00 CET on December 4, 2024, where key financial performances and future strategies will be discussed. Interested participants can register for a webcast or a teleconference to engage in the presentation.

About Systemair

Systemair AB operates in an extensive range of markets, having established a strong presence in 51 countries, notably in Europe, North America, the Middle East, and Asia. With a reported turnover of SEK 12.3 billion in the last financial year, the company continues to prioritize energy-efficient innovations to enhance indoor air quality. It has consistently reported operating profits since its inception in 1974 and has an impressive average growth rate of 9.0 percent over the past decade. Systemair trades on the Nasdaq OMX Nordic Exchange, showcasing a robust profile in the HVAC industry.

For more details, visit Systemair's Investor Relations.

Conclusion

Overall, while Systemair faced some challenges with net sales reduction, the company's ability to maintain positive organic growth in several key markets indicates its ongoing commitment to quality and efficiency. Stakeholders and investors will be closely watching how Systemair adapts and responds in the following quarters as it continues to navigate the complexities of the global market.