Ependion AB (EPEN) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. Hi everyone and welcome to the Q1 update for Ependion. As usual it is myself and Joakim Laurén hosting the call. Myself being in Västerås today and Joakim is in Malmö. So the agenda is almost as usual with one exception. We are going to share a few say a few words on the recent acquisition of Velotech. Apart from that, the agenda looks like it usually does. So, let's move into business update for the quarter then, in general. Well, it was an eventful first quarter for Ependion. Lots of activities and progressive investments in combination with a cost-saving program, as you have probably seen. The highlight for the quarter was that order intake increased by 5% and both business entities contributed to this. Vestimo with 2% and Bayer Electronics with 8%. Sales, however, came in lower than last year, driven by both business entities. It could be important to remember that Vestamo in particular had a very strong comparison quarter in 2024 due to some catching up effects from the components crisis in 2023. We have implemented the cost saving program in the Bayer Electronics business entity. We are of course not satisfied with the profitability level of the group of 9% driven by the weak result in Bayer Electronics. This is a step in order to safeguard profitability going forward. Earnings then came in at 49 million kronor or 9%. This result was impacted by a few things. Negative currency effects being one and quite a big chunk of non-recurring cost items of in total 10 million Swedish kronor. Joakim will come back and elaborate a little bit more on that. What I'm extremely pleased about, however, is the agreement that we did beginning of April to acquire the German company Velotech. I will come back to that in a moment, but the strategic rationale behind this i...