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 ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
11/09/2026
RT has today announced Benetti Menswear as the sponsor of its 2026 Amgen Irish Open coverage for a sixth consecutive year, further strengthening the heritage c...
10/09/2026
Editing, restoration & mastering suite upgraded Acon Digital Acoustica 8 audio editing restoration mastering software.
Acon Digital have just launched the la...
10/09/2026
Classic synths & drum machines available to play
Based in Reading, UK, Readipop are a music and arts charity with a long track record of innovative, partici...
10/09/2026
Popular model updated & new addition introduced
With many of the models in Neumann's KH family now boasting onboard DSP and support for the company'...
10/09/2026
Improved desktop interface announced
The latest iteration of Arturia's flagship desktop audio interface has just arrived, introducing improved preamps, ...
10/09/2026
Progress needs proof: Rohde & Schwarz showcases its trailblazing test solutions ...
10/09/2026
The beloved duo are back with big challenges and even bigger laughs as they discover if you're ever truly too old to try something new.
Previous praise for...
10/09/2026
Thursday 10 September 2026
Sky News Defence Insider app launches as new researc...
10/09/2026
Thursday 10 September 2026
Award-winning network Sky Mobile to offer Apple iPho...
10/09/2026
Thursday 10 September 2026
Sky unveils gripping teaser for The Good Daughter, coming this NovemberTurn on cookies to view this content. Go to Privacy options a...
10/09/2026
Harmonic Leads the New Era of Broadband Connectivity at SCTE TechExpo 2026 Showcase Spotlights Include:
New cOS SensAI intelligence fabric unleashing data-pow...
10/09/2026
RT to Broadcast Amgen Irish Open free-to-air
New multi-year agreement will see RT continue to bring the Amgen Irish Open to Irish audiences
Ryder Cup hig...
10/09/2026
More than 30 women report allegations of sexual harassment, misogyny and bullying within National Ambulance Service
Tonight on RT Prime Time, 9:35pm, RT One ...
10/09/2026
Series 3 of Nero's Class begins Friday 11 September on RT Listen
The third...
09/09/2026
New parts aimed at hip-hop and pop productions
The latest update to Celemony's innovative virtual session musician expands the collection of built-in in...
09/09/2026
Save up to 40% until 21 September 2026
Sonarworks are currently running their Autumn Sale, with discounts of up to 40% currently available across their rang...
09/09/2026
Upcoming title officially launches in September 2026
Bjooks' celebrations for this year's 909 Day will be welcome news amongst drum machine lovers, ...
09/09/2026
Chennai/Luxembourg, 9 September 2026 - SES, a leading space solutions company, today announced the inauguration of its new office in Chennai, India, marking a s...
09/09/2026
September 9 2026, 22:35 (PDT) Cinema Sunshine Becomes Japan's First Exhibit...
09/09/2026
Wednesday 9 September 2026
Tom Daley adds final stitch to giant Baa-Ewe' t...
09/09/2026
Red Seat Ventures Integrates Barometer into Speakeasy to Maximize Podcast Revenu...
09/09/2026
Baselight-powered color comes natively to Media Composer, connecting creative de...
09/09/2026
RT brings three packed days of live radio, entertainment, news, weather and fun
Join RT Radio 1: Morning Ireland, Oliver Callan, Today with David McCullagh,...
08/09/2026
Built for rap producers, by rap producers
Sauceware Audio, the independent plug-in company founded by Grammy-nominated producer Jacob (Travis Scott, 21 Sava...
08/09/2026
Classic Sound Techniques design revived
Warm Audio's latest release delivers a meticulous recreation of the preamp circuitry employed by the Sound Techn...
08/09/2026
Latest soft synth inspired by the Memorymoog
XILS Lab have just launched a software instrument that draws its inspiration from Moog's iconic Memorymoog,...
08/09/2026
September 08, 2026 NORTHRIDGE, Calif. - Soundcraft today announced the launch of its Signature Plus Series Analog Connected Mixing Consoles. As the next genera...
08/09/2026
Tuesday 8 September 2026
Sky Go gets a major upgrade for Sky Glass and Sky Stream customers
Today, Sky launches a new version of the Sky Go app for Sky Glass ...
08/09/2026
Documentary thriller simulating a Russian attack on UK soil will culminate in a live final episode reuniting the playersTuesday 8 September 2026
Trailer releas...
08/09/2026
Tuesday 8 September 2026
Jamie Demetriou and Amelia Dimoldenberg to host next t...
08/09/2026
Wuppertal September 8, 2026
Riedel Introduces New OnAir Headset PlatformRiedel Communications today announced the launch of its new OnAir headset platform, a...
08/09/2026
BERLIN, September 8, 2026 - J nger Audio will introduce a major expansion of its flexAI audio processing platform at IBC 2026. The flexAI system adds autonomous...
08/09/2026
New Vendor-Agnostic Broadband Intelligence Fabric Reduces Operational Complexity and Improves Service Quality for Broadband Service Providers SAN JOSE, Calif. -...
08/09/2026
Arvato Systems Brings TI Expertise to the Stage
Panels, workshops, and real-world examples at the TI-SUMMIT 2026
Arvato Systems, a partner of the TI-SUMMIT 2...
08/09/2026
On October 1, Apple Arcade is rolling out a lineup of fun new games for players ...
07/09/2026
Two new full-range, flat-response cabinets introduced
HeadRush have recently introduced a pair of new full-range, flat-response cabinets designed for player...
07/09/2026
Answering questions about AI in game audio
GameSoundCon, the largest professional conference for video game music and sound design, have announced that they...
07/09/2026
New directional headset mic on show at IBC
Just ahead of this week's IBC show, DPA have announced the launch of a new directional headset that's bee...
07/09/2026
We are not building systems to replace human decision-making; we are building systems that execute our decisions at machine speed. The media companies that win ...
07/09/2026
Every day, we rely on products to work safely, from the power bank in your bag to the solar panels on rooftops. Behind that trust is a process called conformity...
07/09/2026
Monday 7 September 2026
Freddie Meredith joins cast of SNL UK ahead of start of Season 2
Freddie Meredith Images
ZIP (3MB)
Saturday Night Live UK announces ...
07/09/2026
Monday 7 September 2026
Sky and NFTS team up to launch new routes into screen careers
Sky has today announced a new apprenticeship programme, with application...
07/09/2026
Monday 7 September 2026
Sky Sports announces most comprehensive NFL coverage to...
07/09/2026
Dolby, MainConcept, Techex and J nger Audio will showcase the industry's first demonstration of Serial Audio Definition Model (S-ADM) in a cloud-based produ...
07/09/2026
dB Broadcast will showcase APIS Hive, its software platform for designing, deploying and managing modern broadcast infrastructures, at IBC 2026.
Developed from...
07/09/2026
552,000 streams on RT Player
The historic fight, which saw Katie Taylor become...
Interim report 2024, January - June 12 Jul 2024 at 07:30 
