Indutrade (INDT) Q2 2024 earnings summary

Executive summary

• Order intake grew 6% year-over-year to SEK 8,296 million, with 1% organic growth, supported by acquisitions and strong demand in MedTech, pharma, and process industries.

• Net sales increased 5% year-over-year to SEK 8,491 million, with 1% organic growth and positive development in key business areas.

• EBITA margin held steady at 14.8%, matching last year's underlying margin, with EBITA up 3% to SEK 1,253 million, supported by acquisitions.

• Acquisition activity was record-high, with 12 acquisitions YTD contributing SEK 1.1 billion in annual sales.

• Cash flow from operating activities declined 7% to SEK 1,029 million, mainly due to less favorable working capital development.

Financial highlights

• Net sales: SEK 8,491 million (+5% YoY); Order intake: SEK 8,296 million (+6% YoY); Book-to-bill: 98%.

• EBITA: SEK 1,253 million (+3% YoY); EBITA margin: 14.8%; Gross margin: 35.4% (up from 34.6% YoY).

• Earnings per share before dilution rose 1% to SEK 2.00; net profit: SEK 730 million (+1% YoY).

• Return on capital employed: 20% (down from 22% YoY); Return on equity: 18%.

• Net debt/EBITDA: 1.7x (improved from 1.9x YoY); Net debt/equity: 63%.

Outlook and guidance

• Uncertainty in the general business climate is expected to persist in H2 2024.

• Easier prior-year comparisons, strong acquisition pace, and a solid backlog are expected to support performance.

• Stable or slightly improved cost situation and potential for further margin improvement anticipated in H2.

• Infrastructure and construction recovery expected to be slow, with more impact in 2025.

• Life Science and Process, Energy & Water segments expected to maintain strong performance, with volatility in single-use products.