Interim report 2024, January - June 12 Jul 2024 at 07:30
Regulatory press release
Second quarter
Order intake for the second quarter was SEK 769 m (703), corresponding to an increase of 9% whereof acquired growth was 36% and organic growth was -22%. Currency translations had an effect of on net sales of -5%
Net sales reached SEK 845 m (703), corresponding to an increase of 20% whereof acquired growth was 40% and organic growth was -20%. Currency translations had no material effect of on net sales
Adjusted EBIT reached SEK 172 m (154), equal to a 20.4 % (21.9) adjusted operating margin
EBIT reached SEK 104 m (150), equal to a 12.3% (21.4) operating margin
Adjusted profit after tax totaled SEK 103 m (119) and adjusted basic earnings per share was SEK 2.12 (2.56)
Profit after tax totaled SEK 34 m (116) and basic earnings per share was SEK 0.70 (2.48)
Cash flow from operating activities amounted to SEK 152 m (78)
First six months
Order intake for the first six months was SEK 1,242 m (1,384), corresponding to a decrease of 10% whereof acquired growth was 18% and organic growth was -29%
Net sales reached SEK 1,461 m (1,476), corresponding to a 1% decrease whereof acquired growth was 19% and organic growth was -20%. Currency translations had a negative effect of SEK 3 m on net sales
Adjusted EBIT reached SEK 309 m (370), equal to a 21.1% (25.0) adjusted operating margin
EBIT reached SEK 233 m (362), equal to a 16.0% (24.5) operating margin
Adjusted profit after tax totaled SEK 216 m (296) and adjusted basic earnings per share was SEK 4.55 (6.35)
Profit after tax totaled SEK 140 m (288) and basic earnings per share was SEK 2.94 (6.18)
Cash flow from operating activities amounted to SEK 210 m (233)
CEO comments
FIRST QUARTER WITH RED LION
The second quarter of the year saw an improvement in organic order intake compared with the first quarter. We are in a relatively weak market situation where our customers continue to work on adjusting their inventory levels and are in a wait-and-see mode to understand how demand will develop going forward.
The quarter's order intake, including Red Lion, amounts to SEK 769 million (703), corresponding to a growth of 9%. Excluding Red Lion, we see an organic sequential improvement of 9%, but a decrease by 22% compared to last year. We estimate that the quarter's order intake was negatively affected by our customers' inventory adjustments by approximately SEK 100 million. Looking ahead, we believe that customers' inventories are beginning to balance with the current demand, and we expect to see significantly less of these inventory adjustments going forward.
The quarter's turnover, including Red Lion, amounts to SEK 845 million (703), which corresponds to an increase of 20%, but a decrease of 20% compared to the corresponding period last year.
THE RESTRUCTURING PROGRAM NOW IMPLEMENTED
The restructuring program launched at the beginning of the quarter has been completed. The program, which has realized early cost synergies from the acquisition of Red Lion and optimized the European organization, has resulted in savings of SEK 23 million in 2024 and SEK 41 million in full-year effect. The cost of the program amounts to SEK 27 million and will be charged to the second quarter.
Our gross margin lands at 61.9% (64.7), which we think is a good level considering low sales volumes and the addition of Red Lion's slightly lower gross margin.
Operating expenses for the quarter amount to SEK 423 million, which includes items affecting comparability related to the acquisition of Red Lion Controls and the restructuring program - totaling SEK 69 million. All items affecting comparability are explained later in the report. Good cost control is important to us in these slightly more uncertain times, and we can see that the adjusted operating expenses are decreasing organically by 21%.
The adjusted operating profit in the quarter amounts to SEK 172 million (154), which corresponds to an operating margin of 20.4% (21.9). The quarter's cash flow from current operations amounts to SEK 152 million (78).
NORTH AMERICAN ORDERS BACK UP AFTER TEMPORARY DECLINE
The biggest positive impact on the improved sequential order intake comes from the North American market, which after a temporary decline in the first quarter, is now once again developing well.
The European market is moving sideways from the first quarter of 2024 and we have received several indications that the recovery will be somewhat slower than previously estimated.
In Asia, China is showing good development and good outlook. The, for HMS, important Japanese market is slowly moving in the right direction, with a large number of pre-purchase orders placed.
THE INTEGRATION OF RED LION IS IN FULL PROGRESS
The acquisition of Red Lion was completed at the beginning of the quarter and the response from the customers is very positive.
The integration work has been in full swing for three months and the main focus is commercial synergies. In Red Lion's largest market, the USA, our sales organizations have already held several joint customer and distributor meetings. In Asia, the sales organizations are already merged, and although fine-tuning of internal processes remains, the work has gone very well. Several collaborations have also started in Europe and our existing sales infrastructure is being used to improve Red Lion's presence in Europe.
At the same time, several integration initiatives are underway within the supply chain and support functions to further support sales synergies and increased operational efficiency, including changing business systems.
This is the first interim report that includes Red Lion as part of the HMS Group. We have updated the report to make it easier for the reader to follow the development of HMS organica
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
21/01/2026
RT News is pleased to announce the appointment of Jackie Fox as its new Washington Correspondent. Jackie is a multimedia journalist with RT News and has repor...
19/01/2026
Monday 19 January 2026
Sky News reinvents News at Ten for the modern audience with The Wrap
Sky News today announces The Wrap, a bold evolution of its 10pm ou...
19/01/2026
DPA Microphones is striking a new chord in piano miking with the debut of its DPK2015 Piano Stereo Kit, an out-of-the-box, plug-and-play miking solution that ta...
19/01/2026
DPA Microphones will present its 4099 CORE Instrument Microphone and redesigned...
19/01/2026
Trianel relies on Arvato Systems for future-proof data center operations
Moving to the cloud: Arvato Systems implements extensive IT migration project
Migrat...
19/01/2026
Celebrating 21 Years of the RT Choice Music Prize
RT Choice Music Prize
In association with IMRO and IRMA
Irish Album of the Year 2025 - Shortlist Announce...
18/01/2026
January 18 2026, 21:30 (PST) Dolby Cinema Arrives in Bengaluru: Dolby Laborator...
16/01/2026
The start of a new year brings fresh possibilities. Whether you're diving in with big goals or simply setting new intentions, audiobooks can bring inspirati...
16/01/2026
In 2025 we launched the Spotify Partner Program to give creators more ways to tu...
15/01/2026
The SGL Carbon site in Bonn has a long tradition of training. For many years, young talent has been successfully trained here, regularly achieving excellent exa...
15/01/2026
The JEC Composites Innovation Awards annually honor the most innovative and ambi...
15/01/2026
X-energy Reactor Company, LLC ( X-energy ) and SGL Carbon LLC ( SGL ) have signed a 10-year framework agreement to provide graphite for the deployment of X-ener...
15/01/2026
RT is tonight announcing that Mari Hurley has decided to leave her role as RT 's Chief Financial Officer to take up a new position outside RT . Mari will r...
15/01/2026
15 Jan 2026
VEON's Kyivstar Reaches 3.0 million Customers with Starlink Dir...
15/01/2026
Views to free streaming service U grew by 15%, average monthly active users by 23% and registrations by 18%
UKTV's channels achieved record viewing share, ...
15/01/2026
Thursday 15 January 2026
Sky Sports to show Final Stage of inaugural FIFA Women's Champions Cup
Sky and FIFA have agreed an exclusive new partnership whi...
15/01/2026
Thursday 15 January 2026
The official trailer for the second season of Seth Mac...
15/01/2026
Wuppertal January 15, 2026
Riedel RefCam Takes Center Court in German Basketba...
15/01/2026
Arvato Systems Named Launch Partner for AWS European Sovereign Cloud
As a launch partner for the AWS European Sovereign Cloud, Arvato Systems enables customer...
14/01/2026
Staines-upon-Thames, UK, 13th January, 2026 ITV, one of the UKs leading broadcasters, has selected Yospace, the global leader in Dynamic Ad Insertion (DAI), to ...
14/01/2026
Steiger Media's adoption of Calrec's compact Argo M console not only makes its innovative new hybrid truck faster, more efficient, and agile, but also e...
14/01/2026
Press Release: The Boston Globe Names Cartesian a Top Place to Work in 2025
January 14, 2026
News
Cartesian - January 14, 2026 - EINPresswire.com - Sp...
14/01/2026
Comscore and Marcus Theatres Announce Five-Year Extension for Cinema ACE and Ent...
14/01/2026
Comscore and Santikos Entertainment Announce Five-Year Circuit Wide Commitment t...
14/01/2026
Wednesday 14 January 2026
Sky News announces Cathy Newman to lead flagship new political programme
Sky News today announces that award-winning journalist and ...
14/01/2026
The first stamp of An Post's 2026 Stamp Programme, marking 100 Years of Broadcasting, was unveiled at the GPO by Patrick O'Donovan TD, Minister for Cult...
14/01/2026
It's official! Beverley Callard has landed in Carrigstown. The beloved actor, known for her unforgettable roles and iconic screen presence, is joining the c...
13/01/2026
Independent media in Brazil and Colombia is facing an urgent crisis of traditional business models alongside a deteriorating security environment, according to ...
13/01/2026
Luxembourg, December 17, 2025 - SES S.A. ( SES or the Company ), a leading spa...
13/01/2026
Written and executive produced by Steve Lightfoot and Angela LaManna, produced b...
13/01/2026
New updates to Hitmaker Expansion from Celemony and Softube Edit pitch-perfect vocals with Melodyne Essential and get radio-ready guitar tones from Softube...
13/01/2026
Live broadcasts from RT 2FM Breakfast with Carl, Roz & Aisling, RT Radio 1 Tod...
12/01/2026
Spotify's new co-CEOs, Alex Norstr m and Gustav S derstr m, start off the new year with a message of renewed leadership, creative responsibility, and what&#...
12/01/2026
At Spotify, we listen to a lot of music. And every year, our global editors and artist partnerships teams come together to spotlight the emerging voices we beli...
12/01/2026
Spotify's global editors and Songwriter & Publisher Partnerships team spend their days immersed in new music, tracking the writers behind the songs breaking...
12/01/2026
Rohde & Schwarz opens larger office in Japan and increases its support for the J...
12/01/2026
X-Rite and Rhopoint Launch Rhopoint PANTORA Aesthetix to Streamline Creation of...
12/01/2026
12 Jan 2026
VEON's Kyivstar Launches 5G Pilot in Lviv Lviv, January 12, 2026 - VEON, a global digital operator (Nasdaq: VEON), today announces that Kyivsta...
12/01/2026
Monday 12 January 2026
The ultimate betrayal: Harry and Jamie Redknapp, Paul Me...
12/01/2026
Rohde & Schwarz opens larger office in Japan to increase its support for the Jap...
12/01/2026
Welcome to the AVECO team: introducing new members of management
At AVECO, we are continuing to implement our #newAVECO strategy, which aims to build an even s...
12/01/2026
For the first time in the nine-year history of Dancing with the Stars, the first...
10/01/2026
This year, podcasts are making their Golden Globes debut with a new category honoring the medium's leading shows and creators. To mark the occasion, Spotify...
09/01/2026
RT Player has 157 million streams, up 10% year-on-year
An increase on 2024, RT...
09/01/2026
RT 2FM has today announced the highly anticipated list of 2FM Rising Artists for 2026, kicking off 2FM Rising week for the eighth year on The Tracy Clifford Sh...
Interim report 2024, January - June 12 Jul 2024 at 07:30 
