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 ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
11/06/2026
As podcast formats evolve in the streaming era, podcasting needs updated, transp...
11/06/2026
As Spotify's global RADAR program enters its sixth year in Italy, a new class of artists is stepping into the spotlight. Today, we're announcing the six...
11/06/2026
Pride Month is a time for celebration, reflection, and amplifying the diverse stories and perspectives from the LGBTQIA+ community that enrich our world. To hel...
11/06/2026
First in new line of muted string libraries
VSL have just announced the launch of two new string libraries that represent the first two instalments in a new...
11/06/2026
New colour option for 61-key Launchkey MK4
At Superbooth 2025, Novation introduced the Launchkey Mini 37 White and Launchkey 49 White, bringing an additiona...
11/06/2026
Larger, but still compact!
Arturia's popular compact MIDI controller keyboard is now available in a, well, slightly less compact version! The new MiniLa...
11/06/2026
Eurosatory 2026: Rohde & Schwarz shapes the new-generation battlefield Rohde & Schwarz unveils next generation SIGINT/EW and CUAS solutions on uncrewed system...
11/06/2026
Rohde & Schwarz unveils NEMACS - Directional, ultra secure connectivity for the ...
11/06/2026
Thursday 11 June 2026
Daisy May Cooper rallies the nation ahead of ICC Women's T20 World CupTurn on cookies to view this content. Go to Privacy options and...
11/06/2026
Summer solstice shows from C il House and Late Date from 9pm on Saturday 20 Jun...
10/06/2026
Get Hands-On with Interfaces & Mic Preamp Brands
If youre after a new interface or preamp, then GearExpo UK is the place to be! Well have a whole host of au...
10/06/2026
November 13-14 2026, The Midway, San Francisco
Following their recent rebranding, MONO Music Conference (formerly Music Expo) have officially announced thei...
10/06/2026
Debut instrument free for limited time
deFORM is the debut release from newly founded developer ebbandflow, and it's being offered as a free download fo...
10/06/2026
Rohde & Schwarz and TRUMPF advance laser-based drone defense with THORIS LCS Rohde & Schwarz is showcasing THORIS at ILA 2026: A sovereign, end to end counter...
10/06/2026
MAHLE and Rohde & Schwarz develop application for sensor testing of modern drive...
10/06/2026
10 Jun 2026
VEON's Banglalink Brings Every World Cup 2026 Match to Football...
10/06/2026
Wednesday 10 June 2026
How to watch every ICC Women's T20 World Cup 2026 match live on Sky Sports
Where is the ICC Women's T20 World Cup 2026 availabl...
10/06/2026
Wednesday 10 June 2026
P RLA brings first-ever Beautifully Clean Oral Care'...
10/06/2026
Wednesday 10 June 2026
Sky reveals pulse-pounding first teaser trailer for upco...
10/06/2026
Wuppertal June 10, 2026
Riedel Artist at the Heart of the 14th World Live Neurovascular ConferenceAt the 14th World Live Neurovascular Conference (WLNC) in Li...
09/06/2026
Last month, Spotify hosted PURE FLOWERS LIVE, a special event celebrating the re...
09/06/2026
Last month, RADAR U.K. artist Skye Newman took the stage in East London for a sp...
09/06/2026
Company to cease operating on 30 June 2026
Australian loudspeaker and amplifier manufacturer Wayne Jones Audio have announced that after much consideration,...
09/06/2026
Increases low-end weight and character
The latest plug-in release from Sheffield-based fedDSP aims to offer an all-in-one solution for users in search of mo...
09/06/2026
Introduces AI Studio Assistant, Moises Studio integration & more
Fender Studio have just announced the launch a significant update that brings an array of n...
09/06/2026
The BBC has found its Hercule Poirot.
After Deadline revealed last month that t...
09/06/2026
Filming to take place in Holmfirth
9th June 2026, London: U&GOLD is heading bac...
09/06/2026
X-Rite Pantone Launches Offset360 to Modernize Color Control Across Existing Pre...
09/06/2026
09 Jun 2026
VEON Appoints Serkan Ozturk as Chief of Staff & Strategy Officer Dubai and New York, June 9, 2026 - VEON Ltd. (NASDAQ: VEON), a global digital oper...
09/06/2026
Tuesday 9 June 2026
Katie Price: Nothing to Hide, a candid and unfiltered accou...
09/06/2026
Enni Continues to Rely on Arvato Systems - And Will Be Using AEP.EnerS4 Billing Solution
Arvato Systems to implement transformation project for SAP S/4HANA Ut...
09/06/2026
These special programmes will highlight RT 's connection with the Irish diaspora
This year, RT is marking 100 years of public broadcasting in Ireland with...
08/06/2026
At Spotify, our commitment to the LGBTQIA community is year-round. Through GLOW, our global music program, we celebrate and amplify the contributions of queer ...
08/06/2026
Get Hands-on With Keyboard & Synth Brands
GearExpo UK wouldn't be complete without some synth action, and we've got some of the industry's most ...
08/06/2026
50 popular in-ear monitoring system profiles added
The latest update for IK Multimedia's headphone-correction system has just arrived, and introduces ca...
08/06/2026
Manny Marroquin signature cans upgraded with SLAM Technology
The flagship model in Audeze's Manny Marroquin Signature Series has just been treated to an...
08/06/2026
Air domain supremacy redefined - New counter UAS, space solutions and directiona...
08/06/2026
he BBC and BritBox have announced that Edward Bluemel (We Might Regret This, My ...
08/06/2026
Plus, 20% off TVs ahead of kick-offMonday 8 June 2026
Sky introduces Real Time...
08/06/2026
FOX Secures Live NFL Game Package in Mexico Starting in Fall 2026 Agreement Features Thursday Night Football, Sunday Games Package, Thanksgiving Day Games, al...
08/06/2026
FOX One, FOX Sports and Indeed Name Austin Franklin and Kevin Akoto as FOX One C...
08/06/2026
Meet us on the show floor
Stand #286310 Discover Nara, the media management tool used by major facilities including Harbor and Molinare.
Nara v2 introduces re...
08/06/2026
L'art de l'Image dans Reflet dans un diamant mort' Une conversation avec le directeur de la photographie Manuel Dacosse, SBC et l' talonneur Pe...
08/06/2026
Embracing today's modern media workflows: FilmLight presents Nara 2.0, with FilmLight API Designed to support the growing demands of today's production ...
Interim report 2024, January - June 12 Jul 2024 at 07:30 
