HEXPOL AB (publ) (HPOL_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the HexBall Q1 2025 presentation. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the CEO, Klaus Dahlberg, and CFO, Peter Rosen. Please go ahead. Thank you, operator, and good afternoon, everyone. And thank you for joining in on the HEXPOL Q1 presentation. I'm Claes Dahlberg, and I'm here together with our CFO, Peter Rosen. If you please turn to page two, I will start with a business update, tell you a little bit about our latest acquisition, Capcom in Turkey, and also the organizational changes we have done during the quarter, and then touch upon the US trade policy, how that affects us. Peter will take you through the financials and I will then summarize the quarter and focus areas going forward. After that, we're happy to answer your questions, of course. And if you please turn to page four. Let me start by going through the Q1 performance. We did have a good start of the year despite the uncertainty in the world. We're happy to report that we did see the effects of the expected increase in demand after the seasonally weak Q4 last year. We had overall stable sales in Europe and in the US in the first quarter. Asia showed a good improvement driven by engineered products. The somewhat lower EBIT margin was mainly driven by product mix. In the quarter, we delivered sales of close to 5.4 billion SEK and an adjusted EBIT of 839 million SEK with a margin of 15.6%. The organization continues to keep close track on the working capital. As always, in the first quarter, the cash flow is on the lower side, but the 188 million SEK that we achieved is still higher than last year. Moving over to demand and sales prices, organic demand was slightly...