
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
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
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...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
05/08/2026
Thomson's Climate Crisis Toolkit for Media in Tanzania is being included in a new virtual library designed to ensure accurate and engaging storytelling arou...
05/08/2026
RSNs, teams, leagues, and streamers explore the present and future of local spor...
05/08/2026
As sports-production workflows generate larger volumes of unstructured data and ...
05/08/2026
Three aspiring broadcasters will contribute on-camera and inside the production ...
05/08/2026
Adam Meeks attends the premiere of his film Union County, an official selection of the 2026 Sundance Film Festival. (Photo by Jemal Countess/Sundance Institut...
05/08/2026
Major discounts, updates & remakes of early VST plug-ins
Steinberg are currently celebrating two significant anniversaries, with this week marking the 30th ...
05/08/2026
Flagship monitor range gains wireless remote control
KRK's flagship studio monitor range has just been upgraded, with three new fifth-generation models ...
05/08/2026
Rohde & Schwarz launches next phase of Airways New Zealand Air Traffic Control s...
05/08/2026
Rohde & Schwarz presents the R&S MP007, a man-portable tactical direction findin...
05/08/2026
Advertisers invested $53.6 million in the retirement sector in the last 12 month...
05/08/2026
Nielsen CMI and Ad Intel data reveals who's visiting IKEA, where else they s...
05/08/2026
Media buyers and sellers can now compare deduplicated campaign reach across computer, mobile, connected TV and linear TV across all measurable CTV publishers in...
05/08/2026
Stranger Things' Leads All Streaming Titles with 23.3 Billion Minutes in Fir...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
QuickLink, the leading provider of award-winning video production and remote guest integration solutions, announces the appointment of Kane Peterson to its Nort...
05/08/2026
XR research reveals marketers believe they have control over production costs, yet budget overruns, campaign delays and creative cutbacks remain commonplace
Se...
05/08/2026
Game On Live Studio Uses Blackmagic Design to Stream Tropical 7s
Brie Clayton August 4, 2026
0 Comments
Every match of world's largest youth rugby...
05/08/2026
Chris Fitzgerald to Head TDC's Experiential Growth
Brie Clayton August 4, 2026
0 Comments
Technical Direction Company promotes Chris Fitzgerald to...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/08/2026
Profuz Digital is set to launch a powerful upgrade to its Profuz LAPIS digital media management platform at IBC this year at Stand 8.A88. France Galop, Canal+ F...
05/08/2026
KRK, a Gibson brand and leader in professional studio monitoring for nearly four decades, launches its new V Series Five Studio Monitors, the latest evolution o...
05/08/2026
Network expansion, continued customer growth and stable financial performance characterized Magyar Telekoms business results for the first half and second quart...
05/08/2026
Wednesday 5 August 2026
The Sky Foundation launches new bursary programme to su...
05/08/2026
Charlie Sheen Launches Mostly Sheenius in Partnership with Red Seat Ventures After Decades as One of the World's Most Recognizable and Interviewed Celebr...
04/08/2026
Live production in the cloud is a growing trend across the industry, and Major L...
04/08/2026
LAFC co-managing owner will succeed Don Garber on Jan. 1, 2027, as league prepar...
04/08/2026
In 2022, when the PGA TOUR was breaking ground on its new, state-of-the-art broa...
04/08/2026
Provided by POVORA, the new camera angle offers a dealer's-eye view of the c...
04/08/2026
Spiideo will provide the camera setup, with NEP handling broadcast integration and off-site video operations...
04/08/2026
Production team streamed more than 750 youth rugby matches using ATEM switchers,...
04/08/2026
Agreement gives KTC early access to NDI's Advanced SDK for integration across commercial displays, digital signage, and interactive panels...
04/08/2026
Twelve projects across four categories recognize collaborative work in productio...
04/08/2026
Multi-year agreement will introduce SkeleTRACK, semi-automated offside, automate...
04/08/2026
Three mc 56 consoles, dual A__UHD Core engines, RAVENNA networking, and HOME management supported live sound, monitoring, and international broadcast production...
04/08/2026
New contribution products support ultra-low-latency video transport across fixed, remote, and mobile production environments...
04/08/2026
Company will showcase updates across PRIME, Chyron LIVE, Paint, virtual production, newsroom workflows, and venue control...
04/08/2026
Exhibit will feature SilverBack, VersaBrix, VersaFrame, VF-9100, and FiberSaver-10G platforms...
04/08/2026
Platform updates target cloud-based production, high-density ST 2110 monitoring,...
04/08/2026
Live Media Group will take control of Gravity Media's U.S. mobile-unit fleet...
04/08/2026
Amp-modelling rigs get major upgrade
HeadRush have recently released a major firmware update that brings some powerful new features to their Prime, Core and...
04/08/2026
Generate a choir from a single voice track
Following years of development, Am I Audio have just officially launched their debut plug-in. Created in collabor...
04/08/2026
Official EMT-endorsed reverbs now available to all
Two more of Universal Audio's renowned UAD plug-ins have just gained new native versions that can be ...
04/08/2026
SBS helps Australians understand why every Census counts
Media releases
As Australia prepares for the 2026 Census on Tuesday 11 August, SBS is helping ensur...
04/08/2026
Canada invests in the future of HF communications with Rohde & Schwarz solutions After selection by the Canadian Department of National Defence (DND) as the p...
04/08/2026
Blendkit Expands Beyond Blender
Brie Clayton August 4, 2026
0 Comments
Popular 3D Asset Library Launches Alpha Plugins for Maya, Godot, and Rhino
Blend...