Hexatronic Group AB (publ) (HTRO) Q2 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:06.500 Good morning, everyone, and welcome to Hexatronic second quarter presentation for 2025. 00:00:06.764 -- 00:00:10.492 As always, we start with a very brief reminder of who we are. 00:00:10.492 -- 00:00:15.422 Hexatronic is today a global business supporting customers around the world with products 00:00:15.422 -- 00:00:21.327 and solutions needed for fiber connectivity and the ever growing communications needs. 00:00:21.327 -- 00:00:26.374 We sell products and solutions under the Hexatronic brand and a few other brands as well. 00:00:26.374 -- 00:00:31.400 And we manufacture in 18 production facilities across nine different countries. 00:00:31.400 -- 00:00:36.507 Our turnover is about $7.5 billion SEC annually, and the business is organized in 00:00:36.507 -- 00:00:43.173 three business areas, fiber solutions, harsh environment, and data centers. 00:00:43.400 -- 00:00:47.525 Moving on to look at the quarter that just closed. 00:00:47.525 -- 00:00:53.211 We had a sales decline of 6%, which was entirely explained by currency headwinds. 00:00:53.211 -- 00:00:58.296 This is mainly the SEC strengthening against our key selling currencies like US dollar 00:00:58.296 -- 00:01:03.422 and euro. Overall profitability also saw a year on year decline with 00:01:03.422 -- 00:01:07.582 a beta margin landing at 8.9% in the quarter. 00:01:07.582 -- 00:01:11.107 And it was the fiber solutions business that caused this profit decline. 00:01:11.107 -- 00:01:17.035 We saw a weaker than expected quarter in both Europe and particularly in North America. 00:01:17.035 -- 00:01:22.022 On the other hand, our data center business overperformed again with another record quarter 00:01:22.022 -- 00:01:25.046 of very strong growth and profitability. 00:01:25.046 ...