Röko AB (publ) (ROKO_B) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome and good morning. So we start by going into slide number two in our Q2 presentation. We look at two important metrics for compounders or serial acquirers when we assess our business. They are growth in EBITDA and change in leverage that we compare on a year-to-date basis versus the same period last year. We grew EBITDA 11% in the first six months of this year, driven by acquisitions and organic growth, but with negative exchange rate differences. Leverage was unchanged at 2.3 times EBITDA. In the 12 months period since the end of Q2 2024, we have invested approximately 926 million Swedish kronor in acquisitions, of which 600 towards the end of Q2 2025. So the unchanged leverage is due to strong cash flow generation and organic profits. If we move on to page number three, we have the highlights of our group's financial performance with the prior three years providing full year context. In the year-to-date period, we grew sales 6% with 3% organic growth in local currency, Exchange rate differences had a negative impact in the period with minus three percentage points. EBITDA grew 11%, as previously mentioned, driven by acquisitions and organic growth. But as previously said, note that the exchange rate differences were negative and impact both net sales and EBITDA. Our margins are seasonally stronger in the first half year, which you can see here at 22%, whereas full year 2024 at 20. But we still see a margin improvement here in the beginning of the year versus the same period last year. This is predominantly driven by margin improvements in all comparable or in most comparable companies. But we also see that our recent acquisitions have provided a bit of and being margin accretive. As a reminder, we have approximately 7% of our net sales in the US, of which th...