LEAX Interim Financial Report Q2 2024
Continued focus on long-term profitability
The second quarter in summary
• Net Sales decreased to SEK 542.0 million (558.6)
• Operating profit decreased to SEK -6.4 million (32.6)
• Earnings before tax (EBT) decreased to SEK -23.1 million (29.7)
• Net income for the period decreased to SEK -24.4 million (25.9)
• Cash flow from operating activities amounted to SEK 27.4 million (50.0)
The first half of the year in summary
• Net Sales decreased to SEK 1,102.8 million (1,147.2)
• Operating profit decreased to SEK 0.0 million (52.3)
• Earnings before tax (EBT) decreased to SEK -23.3 million (43.4)
• Net income for the period decreased to SEK -25.5 million (37.1)
• Cash flow from operating activities amounted to SEK 53.8 million (103.3)
Comments from the Group President and CEO, Roger Berggren;
During the second quarter of 2024, we at LEAX have continued our work to adapt to the rapidly changing market, where components for electric vehicles continue to show high volatility. This has negatively impacted our net sales and operating profit during the period.
Second quarter net sales totalled SEK 542.0 million (558.6), a decrease of 3.0% compared to the same period last year. The decrease is mainly due to lower volumes in the passenger car industry, but we have also noted a general slowdown in several of our key markets in Europe. However, part of the decrease is offset by the increase in sales in South America.
The operating result for the second quarter was SEK -6.4 million (32.6), which is a significant deterioration compared to last year. This decline reflects the challenges we face, but at the same time we see opportunities to reverse this trend through continued focus on long-term profitability.
We have clear priorities to strengthen our long-term profitability. We do this by focusing on efficiency, strategic improvements and cost efficiency. Furthermore, we are committed to improving our commercial strength by strengthening our presence in existing markets and exploring new opportunities for growth. We aim to maintain a strong financial position by optimising cash flow and reducing debt. We will also continue to capitalise on our internal synergies and expertise to improve our competitiveness and create added value for our customers.
Work is progressing according to plan with overall cost savings, with the expectation of a long-term annual profit improvement of SEK 100 million.
We are confident that our strategy to adapt to changing market conditions and technological shifts will yield positive results over time. With the support of the entire organisation, we continue to work towards our long-term goals.
Roger Berggren, Group President and CEO
Telephone: +46 (0)70 655 99 71
E-mail: roger.berggren@leax.com
Jonas Lundberg, CFO
Telefon: +46 (0)70 453 58 14
E-mail: jonas.lundberg@leax.com
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 2.2 billion in 2023.