Gränges AB (publ) (GRNG) Q3 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen. My name is Jørgen Rosengren. I'm the CEO of Grengis, and I'd like to welcome all of you to this earnings call for the third quarter of 2023. With me here I have our CFO, Oskar Hallström. So let's start with the comments on the third quarter, which was in many, many respects a very good quarter. Most of all, we're proud of the strong profitability and the record cash flow in the quarter. We saw in the third quarter stable sales volumes of 115,000 tons compared to 120,000 last year. This is slightly down, as you can see, and that's more or less in line with the market development we've had and sales development that we've had earlier in this year of 2023. The background to that is that in automotive we see stability in the demand, but in the large HVAC segment we see a return to the normal seasonality in that segment, which is, of course, weaker in the fall and stronger in the spring. And in the past years, that seasonality has been masked by the supply chain difficulties that we've had in the past in the world and by other factors. But now we're back to the normal seasonality. And this presents a year-on-year decline in that particular segment, also exacerbated by the stocking. As we have done now for many quarters in a row, we have been able to offset the price with price and with productivity improvements, the cost increases that we're seeing generally in the world now with the return of inflation in a very good way. which then also helps the profitability to be very strong despite the hesitant markets. So it's in fact up 40% to 439 million. And the last 12 months rolling profitability is the highest that Grange's has ever presented, both on the operating profit level and also on the net profit level. We have in the quarter also a...