06-05-2025
Ratos AB (RTOBF) Q1 2025 Earnings Call Highlights: Record EBITDA Growth Amid Strategic Restructuring
Adjusted EBITDA Growth: Up 32%.
EBITDA Margin: Over 13% for product solutions.
Net Sales: Down 4% due to discontinued operations.
Order Intake: Construction and services order intake up 186%.
Cash Flow from Operating Activities: Down SEK150 million, affected by SEK200 million composition dividend.
Cash Conversion: 135% over the last 12 months.
Net Debt: Increased by SEK800 million during the quarter.
Dividend Payout: SEK1.35 per share, totaling SEK442 million.
Store Closures: Reduction to 89 stores in Norway and Sweden; 11 stores closed in Finland.
Debt Reduction: Financial debts down SEK1.5 billion.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Ratos AB (RTOBF) reported a record quarter with a 32% increase in adjusted EBITDA.
All business areas showed an increase in EBITA, indicating broad-based growth.
The company completed the reconstruction of Contortion in February, showing strong results in Q1.
Strong order intake in construction and services, with order books at record highs.
Product solutions segment saw a 9% increase in net sales despite a slow market.
Negative Points
The company experienced a 4% decline in net sales due to discontinued operations in Plantasjen and Expin Group.
Industrial services faced a negative calendar effect, impacting EBITA by SEK8 million.
TFS continues to face challenges in the clinical trials market, with a weak market outlook.
Net debt increased by SEK800 million during the quarter, primarily due to negative cash flow.
The company incurred several one-off costs related to restructuring and staff reductions in various segments.
Q & A Highlights
Q: Could you explain the one-off costs related to the Speed Group? A: Jonas Wistrom, CEO, explained that the costs were due to a reduction in staff within the manpower business of Speed Group, which is separate from their core third-party logistics operations. Severance pay and related expenses contributed to these costs.
Q: What is the current market situation for TFS, and do you expect it to improve? A: Jonas Wistrom, CEO, noted that the market for TFS, particularly in biotech, remains challenging due to financing difficulties. While the market is expected to recover, the timing is uncertain. Cost adjustments are being made to maintain profitability.
Q: Will the one-off costs seen in this quarter continue in the future? A: Jonas Wistrom, CEO, mentioned that while some costs related to the merger of Semcon and Knightec Group might appear in Q2, no significant additional one-off costs are anticipated beyond that.
