Release Date: August 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HusCompagniet AS (FRA:HCE, Financial) reported a solid gross profit of DKK128 million in Q2, with a gross margin of 22.1%, indicating effective cost control.
- The company saw a 44% increase in sales in the Danish coal business, with 368 units sold in Q2, showcasing strong market traction.
- Free cash flow significantly increased to DKK133 million in Q2, driven by higher cash flow from operating activities.
- The gross order backlog grew by 16% to more than DKK1.9 billion at the end of June, reflecting strong sales momentum.
- The gearing level decreased slightly to 2.4, indicating improved financial stability and adherence to leverage covenants.
Negative Points
- Revenue for the first half of 2024 was 17% lower at DKK1,062 million, primarily due to fewer deliveries following lower sales in 2023.
- The Swedish market remains challenging, with a significant decline in sales and revenue contribution dropping to 5% from 14% last year.
- EBITDA for the first half of 2024 was DKK45 million, down from DKK35 million in the same period last year, indicating pressure on earnings.
- The company experienced a decline in deliveries, with only 382 units delivered in the first half of 2024 compared to 609 units last year.
- There is uncertainty regarding the timing of permits for large B2B projects, which could impact future revenue recognition.
Q & A Highlights
Q: Can you confirm if the change in revenue guidance is due to demand weakness or just a delay?
A: The narrowing of revenue guidance is only due to timing issues in the B2B business, not demand weakness. - Allan Auning-Hansen, CFO
Q: Given the lowered revenue guidance but stable earnings guidance, are there areas where margins are better than expected?
A: We have realized good margins in both B2C and B2B segments, which is why we haven't adjusted the EBITDA guidance. - Allan Auning-Hansen, CFO
Q: Could you elaborate on the interest in the semi-detached business and the permitting cycle?
A: We are gaining market share in the B2B market and are a priority partner due to our own factory, which is positive for future projects. - Martin Ravn-Nielsen, CEO
Q: Should we expect SG&A costs to increase with the current hiring activity?
A: The headcount has increased slightly, but we will adjust based on market pickup and sales activity to maintain high customer confidence. - Martin Ravn-Nielsen, CEO
Q: How do you see the seasonality of the business in 2024?
A: We expect a moderate increase in activity throughout the year, with sales numbers in July meeting our expectations. - Allan Auning-Hansen, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
