Elanders AB (publ) (ELAN_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to the L&R's ABE conference call. My name is George. I'll be your coordinator for today's event. Please note this conference is being recorded and for the duration of call your lines will be in the listen only mode. However, you will have the opportunity to ask questions towards the end of the presentation and this can be done by pressing star 1 on your default keypad to register your question. If you require assistance at any time, please press star 0 and you will be connected to an operator. I'd like to hand you over to your host today, Mr. Magnus Nielsen, to begin today's conference. Please go ahead, sir. Thanks, George. Welcome, everyone. Magnus speaking, and together with me is also our CFO, Elsa Wilson. And I will now go directly to slide number five in our presentation and talk about our first quarter. The demand decreased for the majority of our customer segments, which resulted in a negative organic growth of 2%. It was mainly print and packaging solutions that felt the effects of declining volumes, and supply chain was able to withstand better. In response to the declining demand and uncertainty in the market, we acted very quickly and implemented structural measures around 87 million crowns, and these actions will reduce Alambo's annual cost base with around 145 million crowns, whereof 81 million crowns in already in 2025. And as a consequence of the declining sales, the market turmoil, the adjusted EBIT margin came in at 4.1% compared to 5.5 the year before. If we then go to slide number six and look at our cash flow and cash conversion development, we can show that we continue to deliver a very strong cash conversion, which ended at 138% in the first quarter. We also managed to continue to reduce our working capital, which went down at ...