For ITAB, the first half of 2024 was characterised by higher sales and strong earnings. Operating profit increased by 93 percent to MSEK 311 in the six-month period, corresponding to an operating margin of 9.5 percent. This is the highest operating margin ITAB has reported for the first half of any year so far.

For ITAB, the first half of 2024 was characterised by higher sales and strong earnings. Operating profit increased by 93 percent to MSEK 311 in the six-month period, corresponding to an operating margin of 9.5 percent. This is the highest operating margin ITAB has reported for the first half of any year so far.

ITAB started 2024 with a strong quarter in terms of earnings, despite the unchanged economic climate. The stabilisation in demand that we noted in the autumn has continued, and our gross margin has improved. The operating margin for the quarter was the highest to date for the January–March period in any year in ITAB’s history, which is a confirmation that our long-term plan works.

A good conclusion of 2023 gives the full year the highest operating profit since 2017, strong cash flow and signs of a stabilization of demand. Much work remains to be done but we have taken further steps towards our ambition to be the leading solution provider for the retail sector in Europe.

ITAB reports a strong gross margin and improved cash flow despite a challenging market so far in 2023. The sales trend for ITAB’s solutions for retailers has been varied across our different geographic markets during the first nine months of the year. We have continued to compensate for the economic climate during the year with an improved gross margin thanks to our favourable product mix and the implementation of efficiency measures to lower costs.

The first half of 2023 was characterised by growing interest in our technical solutions. However, the current economic climate is creating caution regarding new investments among ITAB’s customers. The measures taken have allowed us to successfully compensate for lower sales and strengthen our gross margin with a favourable product mix and lower fixed costs.

The indications of a downturn and the cautious approach from customers that we witnessed in the fourth quarter of 2022 negatively impacted sales. At the same time, implemented price increases and a beneficial product mix with increased sales of technical solutions led to a comparatively strong gross margin for the quarter.

It is gratifying to report a strong cash flow and improved earnings despite a challenging 2022. It is primarily our margin-strengthening measures with price adjustments, our continual review of the cost structure and a beneficial product mix that have strengthened our earnings during the year.

Our implemented price increases and cost-saving measures have strengthened our net sales and earnings, creating better balance between price levels and increased costs. Operating profit for the third quarter, which amounted to SEK 163 million, is the highest for a single quarter since 2017.

Price increases have resulted in organic growth of approximately 10 percent so far this year. At the same time, the gross margin has been negatively impacted since our price increases are not yet in balance with the prevailing cost increases and rapidly rising inflation.

We noted healthy demand and results in line with the previous year for the first quarter of 2022, despite challenges in the operating environment that have led to shortages of critical components and rising prices for input goods.

Following an eventful year that was charactirised by operational challenges, it is gratifying to present a close to record-breaking conclusion to 2021, with favourable sales and earnings trends. ITAB’s transformation work and investments for the future proceeded according to plan, and several important steps were taken to establish ITAB as the retail sector’s leading solution provider with a focus on sustainable growth and increased profitability.

As society opens up after varying degrees of lockdown during the pandemic, we are seeing increasing signs that consumers in most of our markets are returning to stores and are once again seeking out social shopping experiences that stimulate all of the senses, something that only physical trade can offer. Our customers have also become increasingly optimistic and are once again planning to make investments for the future, which has been reflected in a favourable order intake for ITAB in 2021 to date.

Compared to last year 2021 have had a good start and during the second quarter the currency adjusted growth was 34% with 13% coming from the acquisition of Cefla Retail Solutions. The customer sector Grocery is leading the growth with 24% for the first half year.

The year started well with currency-adjusted growth of 13 percent, mainly driven by strong growth in Southern Europe, with largest increase in our largest customer category, Grocery. The acquisition of Cefla Retail Solutions contributed 9 percent and organic growth was 4 percent.

We are proud that existing shareholders so clearly support the rights issue and we see this as an indication of trust in ITAB’s transformation plan. We are now seeing the end of a long process and I would like to thank all shareholders, the board and the Macquarie, Vinge, ITAB and Nordea team for all of the hard work and a great collaboration that resulted in an oversubscribed rights issue. I look forward to being able to focus our efforts at establishing ITAB as the leading European solution provider.

During the quarter, we continued to focus on our customers and to transform ITAB according to plan, with shown results. Our solutions create clear added value for our customers while protecting their staff and consumers in a market that is challenging and dynamic.

ITAB’s staff and partners have continued to support our customers in a very good way during the quarter. This includes developing solutions to protect our customers, their staff and consumers, as well as managing challenges with to closed borders and countries through immediate cost savings.

Cefla has a strong position in southern Europe and we see their expertise and long tradition in the Grocery sector as strategically important for ITAB as it strengthen our market presence in southern Europe. We welcome Cefla's employees and the collaboration with them in the coming years. Together, we will develop the offer to Cefla's existing customers by being able to offer ITAB’s solutions in checkouts, selfcheckouts, gates, lighting, store fittings and interactive digital products to create easy, efficient and inspiring consumer experiences.