Röko AB (publ) (ROKO_B) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome and good morning. We want to start with saying that we are not satisfied with the profit growth in the year to date period. The organic development is not satisfactory. We have not been able to complete acquisitions at the pace that we aim for. Regarding the organic development, there are some challenges with construction and automotive exposed companies. And as an example, the UK government has increased taxes on pickup trucks, resulting in lower demand for these vehicles, impacting some of the local companies. In addition, we have some companies with sales in the US of products manufactured either in Asia or in Europe. And for some of these companies, we see significant sales declines in the US market following the trade tariffs. On acquisitions, there is a mixed picture. We see plenty of opportunities, more quality companies than we have done in recent years. However, the pipeline is not worth anything as long as we don't complete acquisitions and we're not satisfied with the acquired growth we have achieved so far this year. If we go to slide number two in our Q2 presentation, we look at two important metrics for compounders that are growth in Evita and change in leverage. We grew Evita 11% in the first nine months, driven by acquisitions and organic growth. Sales grew 6% in the period and the higher growth in EBITDA relates to both margin improvement and recent acquisitions being margin accretive. In the year-to-date period, we also had negative exchange rate differences of around minus 3%. Leverage decreased with 0.1 turns to 2.1 times EBITDA compared to one year ago. In the 12-month period since the end of Q2 2024, we have invested 806 million Swedish kronor in acquisitions, of which two have come in during 2025. One of them has been an add-on. We cont...