Interim report 2024, January - March

 

First quarter

• Net sales for the first quarter reached SEK 616 m (773), corresponding to a decrease of 20%. Currency translations had a negative effect of SEK 3 m on net sales
• Order intake was SEK 473 m (682), corresponding to a decrease of 31%
• Operating profit reached SEK 130 m (211), equal to a 21.1% (27.4) operating margin. Adjusted operating profit reached SEK 133 m, equal to a 21.6 % adjusted operating margin
• Profit after tax totaled SEK 107 m (172) and basic earnings per share was SEK 2.28 (3.70). Adjusted profit after tax totaled SEK 110 m and adjusted basic earnings per share was SEK 2.35
• Cash flow from operating activities amounted to SEK 58 m (155)
  
  

Last twelve months

• Net sales for the last twelve months reached SEK 2,868 m (2,762), corresponding to a 4% increase. Currency translations had a positive effect of SEK 91 m on net sales
• Order intake was SEK 2,094 m (2,889), corresponding to a decrease of 28%
• Operating profit reached SEK 672 m (725), equal to a 23.4% (26.2) operating margin. Adjusted operating profit reached SEK 698 m, equal to a 24.3% adjusted operating margin
• Profit after tax totaled SEK 505 m (568) and basic earnings per share was SEK 10.82 (12.17). Adjusted profit after tax totaled SEK 531 m and adjusted basic earnings per share was SEK 11.38
• Cash flow from operating activities amounted to SEK 422 m (506)
  
  

Subsequent events

• Completed acquisition of 100% of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions (“Red Lion Controls”)
• Launch of cost saving program to reduce cost and streamline organization

CEO comments

A CHALLENGING QUARTER – BRIGHTER FUTURE AHEAD

As expected, the first quarter of the year was weak for HMS. With an order book now back to normal levels, the low order intake also affects invoicing. As we have reported in recent quarters, our customers continue to adjust inventories to normal levels and shorter lead times, which means that our reported order intake does not reflect the underlying demand. We can see some improvements in order intake during the start of April, which is also in line with our expectations.

The quarter’s order intake amounts to SEK 473 million (682), corresponding to an organic decrease of 36%. We can see that the quarter’s order intake was negatively affected by our customers’ inventory adjustments by approximately SEK 180 million. The underlying order intake is estimated at SEK 635 million, which indicates a continued “wait-and-see” market.