In This Article:
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bravida Holding AB (FRA:BV0) reported an improved EBITA margin of 4.5% compared to 4% last year, indicating better operational efficiency.
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The company has a strong balance sheet with low debt levels, providing opportunities for future growth and acquisitions.
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Order backlog increased by 658 million across all countries, showcasing a strong pipeline of future projects.
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Bravida's service business remains stable, contributing to nearly 50% of the company's revenue, which provides a buffer against market volatility.
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The company has made significant progress in sustainability, with 40% of its vehicles being electrically driven, reducing CO2 emissions by 15% over the last 12 months.
Negative Points
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Net sales decreased by 5%, reflecting challenges in the current market environment.
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Organic growth was negative, with a decline of 460 million, indicating difficulties in expanding existing operations.
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The order intake decreased by 1%, highlighting the cautious approach in a tricky market.
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The Finnish market remains challenging, with a 4% decline in sales and a negative organic growth of 17%.
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There are still unresolved large unpaid receivables in Denmark and Norway, which could impact cash flow.
Q & A Highlights
Q: How long will Bravida continue to work on low-margin projects in Denmark, and when can we expect an improvement in margins? A: Unidentified_2: Some projects from the past will continue to phase out, with a few remaining this quarter, but they should be out of the books by the end of the year. Unidentified_1: It's not correct that we have a negative margin in the installation business; we are making money, but some projects impact the margin.
Q: Can Bravida maintain or improve margins in Sweden despite the challenging market, especially in the south? A: Unidentified_1: We expect stability, with potential for margin improvement in 2025 compared to 2024. Measures taken last year, such as scaling down the business, should lead to improved margins in the south, while central and northern regions remain stable.
Q: What are the expectations for the recent acquisition in Bologna regarding sales? A: Unidentified_1: We conducted thorough due diligence and believe the acquisition has a solid order backlog. While sales might vary in 2025, we aim to maintain and develop the top line.
Q: Why is there a decline in service revenues in Sweden, and is Bravida losing market share? A: Unidentified_2: The decline is due to fewer smaller projects related to service. Unidentified_1: We closed down some underperforming branches, impacting organic growth. We don't believe we're losing market share; rather, we've strategically scaled down to prepare for future growth.