Latest news with #EBITMargin
Yahoo
2 days ago
- Business
- Yahoo
Boozt AB (BOZTY) Q2 2025 Earnings Call Highlights: Navigating Revenue Decline with Strategic ...
Revenue: Declined by 3% to SEK1.8 billion, flat in local currency. Booztlet Revenue Growth: Increased by 14% or 17% in local currency. Revenue Decline: Decreased by 6% or 3% in local currency. Adjusted EBIT Margin: 3.4%, down 1.5 percentage points from last year. Gross Margin: 39.1%, down 2.7 percentage points from last year. Free Cash Flow: More than doubled to SEK186 million from SEK90 million last year. Share Buyback: SEK94 million worth of shares repurchased in the quarter. Net Cash Position: SEK75 million at the end of the quarter. Customer Metrics: 53% of customers bought from more than one category, up from 51% last year. Average Order Value: Increased 2% to SEK934. Fulfillment Cost Ratio: Improved to 10.5% from 11.4% last year. Marketing Cost Ratio: Increased to 11.5% from 10.8% last year. Admin and Other Costs Ratio: Decreased by 1.5 percentage points to 9.7%. Financial Guidance for 2025: Net revenue growth of 0% to 6% and adjusted EBIT margin of 4.5% to 5.5%. Free Cash Flow Guidance for 2025: At least SEK500 million. Warning! GuruFocus has detected 3 Warning Sign with BOZTY. Release Date: August 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Booztlet's revenue grew by 14% or 17% in local currency, driven by effective inventory clearance strategies. Strong free cash flow more than doubled to SEK186 million, supported by disciplined inventory management and customs repayment. The company repurchased SEK94 million worth of shares, with plans to increase the share buyback program from SEK200 million to SEK300 million. Operational cost improvements were noted, with fulfillment and admin costs improving by close to 2.5-percentage-points combined. Strategic initiatives in AI and hiring are expected to fuel future growth, enhancing customer experience and operational efficiency. Negative Points Reported revenue declined by 3% due to a 3% currency headwind, with seeing a revenue decline of 6% or 3% in local currency. Adjusted EBIT margin for the quarter was 3.4%, down 1.5-percentage-points from last year, impacted by lower gross margins and higher marketing costs. Marketing cost ratio increased to 11.5% from 10.8% last year, with offline marketing not yielding expected returns. Consumer confidence remains low, particularly affecting demand in Denmark and the women's fashion category. Inventory levels were initially too high, necessitating clearance sales that impacted gross margins negatively. Q & A Highlights Q: Can you provide insights into the start of Q3, considering the variations in April, May, and June? A: Normally, we don't provide current trading details, but I can share that we're back to growth, albeit modest. This supports our guidance for the second half. - Hermann Haraldsson, CEO Q: The guidance range seems wide. Is the upper end of the guidance optimistic given H1 sales? A: It's a combination of easier comps, better stock alignment, and optimism for revenue. On costs, we're well-controlled, so the midpoint is a good bet, not the lower end. - Hermann Haraldsson, CEO Q: Can you confirm the underlying margin in Q2 and Q3, excluding Norwegian import duties? A: We have a tailwind from customs of 0.7-percentage-points this quarter, with a full-year impact of around 0.5-percentage-points. - Sandra Gadd, CFO Q: How has the FX rate movement affected your guidance? A: It's too early to say definitively, but our current guidance covers the changes. We'll be more specific in Q3 if needed. - Sandra Gadd, CFO Q: What is the quality of your current inventory, and do you anticipate further clearances in Q3? A: Our inventory is in line with last year, and we have managed to clear excess stock. We are focusing on having the right inventory for especially correcting for the women's category for fall. - Hermann Haraldsson, CEO Q: Will the marketing spend in H2 be neutralized by increased fashion-related marketing? A: The marketing cost ratio was too high in Q2. We aim for a long-term ratio of 10% or below, and we are revisiting our strategy to increase category awareness effectively. - Hermann Haraldsson, CEO Q: What drove the recovery in June, and was it widespread across regions? A: The recovery was driven by improved weather and consumer confidence. Denmark remains more depressed, while Sweden is performing well. - Hermann Haraldsson, CEO Q: Have you seen any changes in competition from ultra-fast fashion players? A: Competition remains intense, but some ultra-fast fashion players are losing ground. The decline in women's dresses may be due to cheaper, trend-driven purchases. - Hermann Haraldsson, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
Boozt AB (BOZTY) Q2 2025 Earnings Call Highlights: Navigating Revenue Decline with Strategic ...
Revenue: Declined by 3% to SEK1.8 billion, flat in local currency. Booztlet Revenue Growth: Increased by 14% or 17% in local currency. Revenue Decline: Decreased by 6% or 3% in local currency. Adjusted EBIT Margin: 3.4%, down 1.5 percentage points from last year. Gross Margin: 39.1%, down 2.7 percentage points from last year. Free Cash Flow: More than doubled to SEK186 million from SEK90 million last year. Share Buyback: SEK94 million worth of shares repurchased in the quarter. Net Cash Position: SEK75 million at the end of the quarter. Customer Metrics: 53% of customers bought from more than one category, up from 51% last year. Average Order Value: Increased 2% to SEK934. Fulfillment Cost Ratio: Improved to 10.5% from 11.4% last year. Marketing Cost Ratio: Increased to 11.5% from 10.8% last year. Admin and Other Costs Ratio: Decreased by 1.5 percentage points to 9.7%. Financial Guidance for 2025: Net revenue growth of 0% to 6% and adjusted EBIT margin of 4.5% to 5.5%. Free Cash Flow Guidance for 2025: At least SEK500 million. Warning! GuruFocus has detected 3 Warning Sign with BOZTY. Release Date: August 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Booztlet's revenue grew by 14% or 17% in local currency, driven by effective inventory clearance strategies. Strong free cash flow more than doubled to SEK186 million, supported by disciplined inventory management and customs repayment. The company repurchased SEK94 million worth of shares, with plans to increase the share buyback program from SEK200 million to SEK300 million. Operational cost improvements were noted, with fulfillment and admin costs improving by close to 2.5-percentage-points combined. Strategic initiatives in AI and hiring are expected to fuel future growth, enhancing customer experience and operational efficiency. Negative Points Reported revenue declined by 3% due to a 3% currency headwind, with seeing a revenue decline of 6% or 3% in local currency. Adjusted EBIT margin for the quarter was 3.4%, down 1.5-percentage-points from last year, impacted by lower gross margins and higher marketing costs. Marketing cost ratio increased to 11.5% from 10.8% last year, with offline marketing not yielding expected returns. Consumer confidence remains low, particularly affecting demand in Denmark and the women's fashion category. Inventory levels were initially too high, necessitating clearance sales that impacted gross margins negatively. Q & A Highlights Q: Can you provide insights into the start of Q3, considering the variations in April, May, and June? A: Normally, we don't provide current trading details, but I can share that we're back to growth, albeit modest. This supports our guidance for the second half. - Hermann Haraldsson, CEO Q: The guidance range seems wide. Is the upper end of the guidance optimistic given H1 sales? A: It's a combination of easier comps, better stock alignment, and optimism for revenue. On costs, we're well-controlled, so the midpoint is a good bet, not the lower end. - Hermann Haraldsson, CEO Q: Can you confirm the underlying margin in Q2 and Q3, excluding Norwegian import duties? A: We have a tailwind from customs of 0.7-percentage-points this quarter, with a full-year impact of around 0.5-percentage-points. - Sandra Gadd, CFO Q: How has the FX rate movement affected your guidance? A: It's too early to say definitively, but our current guidance covers the changes. We'll be more specific in Q3 if needed. - Sandra Gadd, CFO Q: What is the quality of your current inventory, and do you anticipate further clearances in Q3? A: Our inventory is in line with last year, and we have managed to clear excess stock. We are focusing on having the right inventory for especially correcting for the women's category for fall. - Hermann Haraldsson, CEO Q: Will the marketing spend in H2 be neutralized by increased fashion-related marketing? A: The marketing cost ratio was too high in Q2. We aim for a long-term ratio of 10% or below, and we are revisiting our strategy to increase category awareness effectively. - Hermann Haraldsson, CEO Q: What drove the recovery in June, and was it widespread across regions? A: The recovery was driven by improved weather and consumer confidence. Denmark remains more depressed, while Sweden is performing well. - Hermann Haraldsson, CEO Q: Have you seen any changes in competition from ultra-fast fashion players? A: Competition remains intense, but some ultra-fast fashion players are losing ground. The decline in women's dresses may be due to cheaper, trend-driven purchases. - Hermann Haraldsson, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Vestas Wind Systems AS (VWDRY) Q2 2025 Earnings Call Highlights: Revenue Growth Amid Order ...
Revenue: EUR3.7 billion, an increase of 14% year-on-year. EBIT Margin: 1.5% for the quarter. Order Intake: 2 gigawatts, down 44% compared to last year. Return on Capital Employed (ROCE): 11.5%, highest since 2020. Service Order Backlog: Increased to EUR36 billion from EUR35 billion a year ago. Service Revenue: Declined 4% year-on-year, excluding planned cost adjustments. Service EBIT Margin: 17.2%. Net Working Capital: Decreased due to increased customer down and milestone payments. Operating Cash Flow: EUR120 million, a decline compared to last year. Adjusted Free Cash Flow: Minus EUR227 million. Net Debt Position: EUR7 million. Investments: EUR288 million in Q2, primarily for offshore ramp-up. Warranty Costs: EUR115 million, 3.1% of revenue, improved from 4.3% last year. Earnings Per Share: EUR0.8 on a 12-month rolling basis. 2025 Outlook: Revenue EUR18-20 billion, EBIT margin 4-7%, Service EBIT around EUR700 million, Total investments approximately EUR1.2 billion. Warning! GuruFocus has detected 6 Warning Signs with VWDRY. Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Vestas Wind Systems AS (VWDRY) reported a 14% year-on-year increase in revenue, reaching EUR3.7 billion for the quarter. The company achieved an EBIT margin of 1.5%, with improved onshore project performance and lower warranty costs. Return on capital employed improved to 11.5%, marking the highest return since 2020. The Service order backlog increased to EUR36 billion, indicating strong demand and growth potential. Vestas maintained its 2025 outlook guidance, reflecting confidence in its strategic direction and market position. Negative Points Order intake was down 44% year-on-year, primarily due to a lack of orders in the Americas, especially the US, as customers awaited policy clarity. The ASP (average selling price) declined to EUR1.11 million per megawatt, driven by a change in order mix. Offshore ramp-up costs negatively impacted profitability, with significant expenses related to the new nacelle facility in Poland. The number of recordable injuries per million working hours increased from 2.8 to 3.0 year-on-year, highlighting safety challenges. The Service segment experienced a 4% year-on-year revenue decline, mainly due to a 3% currency headwind. Q & A Highlights Q: Can you provide more clarity on the potential near-term order rally in the US and whether it will be short-lived or extend over a longer period? A: Henrik Andersen, CEO: The US market is expected to see significant activity due to policy clarity, with substantial demand extending towards the end of the decade. The recent policy changes have created a structured program for energy asset build-out, particularly in wind, which is expected to drive robust demand. Q: What are the priorities for the incoming CTO, given the recent change in leadership? A: Henrik Andersen, CEO: The new CTO, Felix, brings extensive experience, particularly in gearboxes, but the focus remains on continuity and building on the existing strategy. The transition is smooth, with no pause in operations, and Felix's background will enhance our capabilities. Q: Where should we expect order intake for the rest of the year, particularly in Europe and offshore? A: Henrik Andersen, CEO: In Europe, Germany remains a key focus due to its efficient permitting and auction processes. Other EU countries are learning from Germany's success. Offshore order intake depends on project-specific factors, but the overall market remains strong. Q: How do you view capital allocation given the current cash flow and net debt position? A: Jakob Wegge-Larsen, CFO: Our priority is to invest in the business, followed by dividends and share buybacks as we generate free cash flow. We remain committed to this strategy, and our depreciation and amortization guidance remains on track. Q: What is the status of the onshore business, and what challenges remain for achieving a 10% EBIT margin? A: Henrik Andersen, CEO: The onshore business is performing well, with improved deliveries and execution. Challenges remain in the US, but progress is being made. The focus is on maintaining profitability and leveraging operational efficiencies. Q: Can you provide insights into the offshore ramp-up and its impact on financials? A: Henrik Andersen, CEO: The offshore ramp-up is on plan, with costs expected to peak by year-end. The focus is on achieving volume production and reducing ramp-up costs, which should improve financial performance in the coming years. Q: How are you addressing the impact of US tariffs on your business? A: Henrik Andersen, CEO: We are working with customers to mitigate tariff impacts, and most of the tariff effects for 2025 are covered. The tariffs are a moving target, but we are managing them through strategic planning and customer collaboration. Q: What progress has been made in the Service division's commercial reset, and how is it impacting financials? A: Henrik Andersen, CEO: The commercial reset is ongoing, with a focus on contract renewals and pricing adjustments. While there are no immediate financial upsides, the process is integrated into the run rate, ensuring long-term improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
05-08-2025
- Business
- Yahoo
Stabilus SE (SIUAF) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic Stability
Revenue: EUR316 million in Q3, down 10% year-over-year. EBIT Margin: 11.1% year-to-date, consistent with last year. Free Cash Flow: EUR105 million expected for the full year. Net Leverage Ratio: Covenant increased to 4.0 until September 2026. Investment: 6.8% of revenue, focusing on automation. Regional Performance: Americas down 12%, Asia Pacific down 21%, Europe stable. FX Impact: Negative impact of 5% on revenue due to strong euro. Term Loan: New EUR150 million loan maturing in June 2029. Warning! GuruFocus has detected 4 Warning Signs with SIUAF. Release Date: August 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Stabilus SE (SIUAF) maintained an EBIT margin of 11.1% year-to-date, consistent with the previous year, despite a challenging market environment. The company successfully refinanced its term loan ahead of schedule, securing a new long-term loan facility of EUR 150 million maturing in June 2029. Stabilus SE (SIUAF) increased its covenant headroom to 4.0 until September 2026, indicating strong financial stability and trust from banks. The company expects a free cash flow of EUR 105 million for the year, with a cash flow ratio exceeding 50%, demonstrating strong cash generation capabilities. Stabilus SE (SIUAF) is implementing cost-cutting measures across various areas, including purchasing savings and operational efficiencies, to maintain profitability in a soft market. Negative Points Revenues in the third quarter were down by 10%, primarily due to a strong euro and the global tariff conflict, impacting sales in North America and Asia Pacific. The company experienced a significant FX impact, with the euro's strength affecting revenues in North America and China. Sales in the Americas and Asia Pacific regions declined by 12% and 21%, respectively, due to softer demand in the automotive and industrial sectors. The Asia Pacific Powerise segment saw a 15% decline in organic revenues, with pricing pressures and competition in China contributing to the decrease. Stabilus SE (SIUAF) anticipates continued pricing pressure in China, with prices expected to decrease by another 3% to 4% next year. Q & A Highlights Q: Could you provide more details on OEM call-offs within the automotive sector and order intake trends across your industrial businesses? Are there signs of stabilization? A: Michael Buechsner, CEO: We believe we have reached the bottom in terms of demand. The consumer sentiment is stabilizing, and we see positive signs in the industrial sector for next year. The automotive sector remains challenging, but investments in equipment indicate potential growth. Overall, we expect a more stable environment next year. Q: Regarding APAC Powerise and China pricing, when can we expect stabilization and a return to growth in this segment? A: Michael Buechsner, CEO: We experienced a 15% decline in organic revenues in APAC Powerise, driven by a 7-8% price reduction and lower volumes. We anticipate prices to decrease by another 3-4% next year, but expect more stability as competitors reach pricing limits. Growth should stabilize as market conditions improve. Q: Can you quantify the cost actions you're taking for next year? A: Michael Buechsner, CEO: We aim to reduce bill of material costs by 2-3% annually through VAVE actions and supplier negotiations. This year, we've achieved a 3-4% reduction, offsetting some market impacts. Our cost-cutting initiatives in indirect areas should improve margins by about a percentage point next year. Q: Are you still committed to your strategic growth targets despite current market weaknesses? A: Michael Buechsner, CEO: Yes, we remain committed to our strategic growth targets. We expect some recovery of postponed orders in the fourth quarter or next year. Our business model is intact, and we continue to win contracts, indicating a positive outlook. Q: Is there any change to the refinancing conditions or covenants? A: Michael Buechsner, CEO: No changes to the terms and conditions. Our covenant has increased from 3.5 to 4.0, providing more headroom and stability. This reflects the trust and support from our syndicated banks, and we remain committed to deleveraging. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
19-07-2025
- Business
- Yahoo
KONE Oyj (KNYJF) Q2 2025 Earnings Call Highlights: Strong Modernization Growth Amidst ...
Sales Growth: Increased by 4.9% at comparable currencies. Modernization Sales Growth: Nearly 20% increase. Adjusted EBIT Margin: Improved by 25 basis points for Q2. Operating Cash Flow: Increased by approximately EUR 50 million year over year. Orders Received: Increased by 3% at comparable currencies. New Building Solutions Sales Decline: 5.2% decrease, mainly due to low delivery volumes in China. Services Growth: 8.6% overall increase, with over 10% growth outside China. Adjusted EBIT: EUR 347 million. Cash Flow: EUR 364 million for Q2, EUR 851 million year to date. Sales Guidance for 2025: Expected growth of 2% to 5% at comparable currencies. Adjusted EBIT Margin Guidance: 11.8% to 12.4% for the year. Warning! GuruFocus has detected 7 Warning Sign with KNYJF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points KONE Oyj (KNYJF) reported a 12th consecutive quarter of margin expansion, showcasing strong financial performance. The company achieved nearly 20% sales growth in its Modernization segment, indicating robust demand and execution. Service business outside China developed well, with over 10% growth, highlighting the strength of KONE's service offerings. KONE's Rise strategy is progressing well, with significant advancements in digital connectivity and field productivity tools. The company is making strides in sustainability, with 60% of equipment deliveries now equipped with regenerative drives, aiding in Scope 3 emission reduction. Negative Points Market conditions in China remain challenging, with continued pressure on pricing and margins in the New Building Solutions segment. Despite strong growth in Modernization, the high comparison point from the previous year resulted in lower order growth this quarter. The company faces a EUR50 million negative impact on EBIT due to unfavorable foreign exchange rates. Tariffs have increased business complexity in the US, impacting costs for imported goods and components. KONE's New Building Solutions sales in China declined by 5.2% due to low delivery volumes, affecting overall sales growth. Q & A Highlights Q: Can you discuss the improvements in service margins and whether this trend will continue? A: Ilkka Hara, CFO: We have good margins in Services but see potential for improvement. Our sales and operational excellence initiatives, particularly in pricing and digital services, are driving these improvements. We expect continued tailwinds from these initiatives in the coming quarters and years. Philippe Delorme, CEO: We are clear on what needs to be done and know it works. It's about scaling pricing and service operations to leverage digital technology for efficiency. Q: Regarding regenerative drives, is this an opportunity for higher value per unit? A: Ilkka Hara, CFO: Regenerative drives are a value add for customers and improve our competitiveness. They contribute to energy efficiency and are part of our commitment to reducing Scope 3 emissions. Philippe Delorme, CEO: For customers focused on energy efficiency, regenerative drives offer a 30% improvement. It's a market advantage supported by significant R&D investments. Q: Why was Modernization growth lower this quarter compared to Q1? A: Philippe Delorme, CEO: Last year's Q2 had a high growth base, impacting this quarter's comparison. Modernization includes major projects and volume business, which can vary quarter to quarter. We remain optimistic about market potential and confident in driving superior growth in Modernization. Q: Can you elaborate on the pricing environment outside of China? A: Ilkka Hara, CFO: In Modernization, pricing is stable with significant opportunities. In New Building Solutions (NBS), pricing is more stable outside China, contributing to stable margins. In Services, we see opportunities for further pricing increases by understanding customer value. Q: What is the current situation in China, and how does it affect your business? A: Philippe Delorme, CEO: The China market is split between New Construction and Modernization/Service. New Construction is down, but we see opportunities in Modernization and Service. Our team is disciplined in cash delivery and margin improvement, focusing on rebalancing towards Modernization and Service. Q: Can you provide details on the margin bridge to the 2025 guidance? A: Ilkka Hara, CFO: Our top-line guidance is 2% to 5% growth. Higher sales will provide fixed cost leverage. Services and Modernization will contribute positively to margins, despite increased R&D investments. We expect improved EBIT margins compared to last year. Q: What factors contributed to stable margins on orders this quarter? A: Ilkka Hara, CFO: We achieved record-high product cost reductions, particularly in China, benefiting other regions. While China remains competitive, margins outside China are stable, balancing the overall margin stability. Q: How is the Modernization business performing in China, and is it still the most profitable segment there? A: Ilkka Hara, CFO: We saw record growth in Modernization orders and sales in China, and it remains the most profitable segment. Partial Modernization offers higher margins, and we are strategically focusing on this area. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
