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5/8/2025
Good morning everyone and welcome to this presentation from .M.Matsan Group and our results for the first quarter 2025. And we present today in regular order, I would say Jörg Fredrik and my colleague Martin. We will go through a couple of pictures here with the final question and our activity that has been going on in our six strong products in the concern that are fighting against different target groups and different regions. Together we think we give ourselves a good breadth and depth to develop our existing and new code relations in our different markets. We have a look into the first quarter 2025, it feels very fun to be able to sum up a good start to the year and especially the fact that we have a situation that is not really our help. It has been a while, so that's why it feels extra fun with a good start to the year where the sales increased by .1% compared to the first quarter 2025-24. And we can also say that both of our segments grow by .1% in the Nordic region and an increased growth in our international market that has grown by 0.1%. And it also feels fun to say that our margins are decreasing and an improvement on our EBITDA margin from .8% to .1% here in the first quarter compared to the corresponding quarter. And one explanation for this is that we have a good sales and a good volume to work with. At the same time, we want to highlight that we also have a number of revenue costs that affect the margin. And apart from that, the margin has been much stronger and the market will give more detail about this soon, but the revenue costs are usually about the activities we do in our organization. Then we continue to see a situation that is uncertain. We thought that it would feel a little better in terms of the situation, even though we went into 2025. As we all know, a lot has happened in these TUD questions and an uncertainty in the environment that we do not ourselves have the right to
affect that it is still not an uncertain situation for us.
And
then we think that in
our industry and the business we are doing, we can see that it is more challenging in some countries and some customer segments and some differences for our brands. We can see that in the first quarter it has been more challenging in Sweden and Denmark, but also in Germany. Germany is a relatively small part of our total business, but it is the countries that stand out the most. We also see that it is more challenging in the question when it comes to our private clients, the business that keeps up the best activity levels and what we call professional market in most countries. And of course it is tough, but we have continued to build new and above all in our Nordic markets. We are now talking about a relatively small part of our total turnover. We estimate that the new construction market may be about 15% of our total sales. So we have a strong stability in our exposure to the revenue side. And at home in Sweden we also see a hope that improved support for consumers will be able to help our business further. Otherwise, we continue to see that there is uncertainty in the economy and in the environment. We have our customers a little more careful to invest in new bathrooms and kitchens. We continue to follow the situation very closely and continue to work a lot around our effectiveness, keeping a good cost-effectiveness. But we also see that we have good conditions for several of our brands and other countries to actually take additional market share. I also think that we see from the first quarter that the growth depends on a certain amount of market
share in several countries, which is a good example of the strategy and the work that our
organization
does. I would also like to take the opportunity to highlight a
specific progress during the first quarter. The first quarter is a work that we have been working on for a long time, in the course of 2024. We have made a small overview and found some new ways forward around the HotBath brand. We are making a commitment here at HotBath to make a wider product program and also lift our supplement towards a clearer revenue focus. This launch was in March at the big branch fair in Frankfurt. I got a very nice response to the launch that was made. We developed a very nice development with HotBath over the years. We also made the commitment to take a new step forward with a strategy that will strengthen the hope for existing customers and also to come up with new record groups in the countries we are targeting. We also want to have a nice development from a low start level. It feels great to have this on the scene and to be able to roll out this on the market. It
will be exciting
to follow this in
2025.
I would like to hand over to Martin who will give more color to the numbers of the developers during the first quarter.
Thank you Fredrik. It was a good start to the year, especially with sales. We have increased by 30 million or 36% in sales. This has had a positive effect on the result. The market margin is slightly higher than the first quarter of the year. We have increased sales because of the product mix. In sales we have an improvement of 5 million. But within these numbers, the cost of the once is for the effectiveness that we have done in the previous quarter. If you put back the number of million in the improvement, it is 17% and an adjusted EBITDA margin of .9% compared to .8% last year.
This is a good progress. Then we
have a slightly longer perspective. Our turnover has been quite stable, about 1.9 billion since 2022. You can see a big step up towards the top as earlier in the first quarter. The cash flow has also been very positive during this period. During the quarter, there was an increase in capital, mainly in customer demand. Then you see a minimum of 1.5
billion. We continue
to the net debt and solidity. We are in principle only borrowing millions of leasing as a debt. We have no bank loans and we have been paid by the previous debt. We have 150 million in liquid assets, so we have a strong position to continue to invest in the business. Then we summarize the performance against our goal. We have achieved the goal in the first quarter for organic growth. The goal is 5% and we have over 6% when we have a -to-effect. The EBITDA margin is 12 months. This is a small improvement. We are a bit from the goal. It is a goal that is under a conjecture cycle. We expect to see a better market.
We are looking forward to the
solidity that has been strong and far above the
goal. Now
I
leave it back to Fredrik.
Thank you, Marker. We continue to work hard to develop opportunities in the market. We see that there are areas that are sticking out. We continue to invest and focus on efficiency. We continue to work on the strategy. We have worked for a long period and we feel that we have a good result. It feels right for the future. It helps us to grow and grow again. Our five strategic hands are the strong customers. We have a wide portfolio that continues to try to focus on the product. Sustainability and digitalization are also on the agenda. We are working on the project and we are working on what we can help with. We are working on efficiency. It is important that we have a conjecture cycle. We want to have a lot of customers and have more opportunities to make the country more efficient. We have a clear vision of the organization. We try to get more employees every day to support the strategy. We
are working on this together with our partners in the organization. If we start with the summary
of the first quarter, we think it is a good start. The sales are good and it is nice to see that the margins are improving. The financial situation is affecting the target level. We are working with the right people in the organization. It feels good for the coming quarter. It is also fun to see that we have a clear vision of the strategy. We want to create more opportunities to develop the business. We have both existing and new customers in the Netherlands and in other countries. It feels exciting. We continue to follow the conjecture cycle. We think that the whole 2025 will be continued. He is using small differences between different segments of the conjecture cycle and different countries. This is the summary of the first quarter. We will have to wait a little bit longer. If you want to ask questions, press the button. the day has been for years,
lecture 1 hello who are here and I can see where they've had quite an interesting bob of Well you got one
I have a question from Mats Vis.
I hope it works. Congratulations on a good start to the year. I am a little... I can't hear you, Mats. Sorry, I can't
hear you.
It's activated, but I can't hear you.
Mats, I'm going to go up.
Listen, I have done what I can.
Now I can hear you.
Is it working better now? Yes. Should I try to do something? Yes, congratulations on the first quarter. It looks really good. You have worked a little with the cost of the mass and you have some extra costs. Have those effects been fully implemented in the first quarter? Or is it something that is successfully filtering into the result? Or how should we look at it? And maybe also if you have made the adjustments that are needed now. Or should we expect more of that kind of measures?
Yes,
that's a good question. The cost of the first quarter that we have had now is for a reduction in the demand, mostly those that have stopped during the quarter. So we have not seen an effect, a savings from those during the quarter, but will it be... Yes, questions from the audience. From the second quarter, there are some effectivization that we have worked with during the previous year that have started to have an effect. But we now have an option that I think is an effective break for a longer period. So I expect that the demand will increase over time. I will work with internal effectiveness. I will work with purchase, production processes, and digitization for an effectivization of the business. So this is high on the agenda and we are trying to make successive improvements.
And the cost savings you get from these measures on a yearly basis, how should we look at this? Is it the opposite, if you can give some indication?
Yes, it's a...
Usually, the savings we make in the return cost should be at least as big as the return cost we have had from the previous effectivization.
Then, if you look at the sales, it was really good. And how should you look at that? Is there some kind of pre-sale effect that you increase the prices, or is it a natural part of a better market and activity in international segments that makes this effect? Is it sustainable in the future? Or is it the customers who are building a warehouse? Are there similar effects that you have to take into account?
I don't think it's a clear effect of building a warehouse, but it's a relatively normal shopping pattern. And then there are some markets that drive a little better sales. We see that we have a nice development in the UK and the Netherlands, where they grow faster than the market and have managed to get in on some new coins. We have a fairly short order, and it's visible in our market, of course. I think we have a good trend and I think that we have a good idea to continue in those countries. And what we have done product-wise for the different brands, I also think gives support to continue that trend. So there we are optimistic, but also with the urgency for how the environment looks. And I also see that in those countries it is a relatively low financial situation. But overall we feel optimistic. In the Nordic markets, I also think that we have a strong position and presence in the professional road segment, especially since it has been shown historically to be able to maintain a good demand, even if the financial situation is generally a little weaker. I think it's important to continue to keep it up. But the situation has been more challenging in the Nordic market, in my opinion, and maybe also on the export side. We as a company are a little more exposed to the Nordic market and the changes in demand affect us a little less and the production opportunities are increasingly more limited than when we come internationally, where we are a smaller shareholder and see more opportunities to get into new niches and come into new markets. We have made a number of price adjustments here in India as well as in the usual, and which usually do, which have partly begun to break through in the first quarter. I don't think they have led to any analog purchasing patterns in our
markets, but it feels like business as usual.
Okay, then just this with... You have a very strong financial situation and the purchases you have made are delivering, which sounds pretty good. How should we look at that? You are expanding HotBot, are you really more towards premium signals within different activities? Is that how you will grow more now, or do you have an agenda for the future? That there is room to cover all of that? You play in many ways, but what is the next year's agenda? Or do you think?
Yes, but we have definitely grown and I think we have it more in the plans for the development of the business. We are looking at finding these opportunities and they are bigger internationally, but we also see within the Nordic region where we might be able to get more with our product portfolio. But definitely where purchasing is still an important component in our everyday life, which we work a lot with. The focus is to find companies that can strengthen us both in the Nordic region and in the new areas outside the Nordic region. We are also looking at expanding our bar so that we can offer a broader program to the bathroom market, especially in all of our countries. We are already doing some of that today, for example with the strategy we are working on in Hotbeth from the point of view of a clean, clean mix of companies. We are now working on a broader concept of the bathroom and we are trying to combine it with mirrors, and hand sanitizers and so on. We want to do that in the winter market, but it is the heat that can take the next steps forward. So that the market is able to bring out more opportunities. We feel that we have a good situation in the company with the strategy and management structure we have and the work we have built up. We also have a good financial situation, so we are looking forward to developing more in the future.
Finally, a little bit about the supply-buy difference. Can you update the status of the company? Is there anything left, or is it already handled?
Yes, we have paid all of these bills last year, so there is no debt left.
Okay, that was about it. Thank you very
much. Thank you, Mats. Let's see if
we have
any
more questions. We have no more questions.
So I think that is all for now. Thank you for your time and for your support. We are looking forward to the next week's meeting with the state of Tarimora. So maybe some of you who have listened, will join us then. Thank you very much. We will end here and wish you all a good day. Thank you very much. Bye. Thank you, Pianne. Have a good day.