Sweden · Delayed Price · Currency is SEK Arjo AB Earnings Call Transcripts
Fiscal Year 2026
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A SEK 350 million EBIT improvement is targeted within 30–36 months, driven by efficiency, procurement, and portfolio simplification, with most gains expected in the next two years. North America remains a key growth region, especially in long-term care, while new strategy execution and cultural transformation are central to future value creation.
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Solid organic growth of 4.7% was achieved, led by global sales, but margin pressure persisted due to higher transportation and material costs. Profitability and cash flow improved, with strong demand expected to continue and strategic updates to be detailed at the upcoming Capital Markets Day.
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Stable Q1 with 3.8% organic growth, strong U.S. and rest of world sales, and improved cash flow. Margins slightly down due to tariffs and FX, but EBIT margin up on lower restructuring costs. Strategy update expected H2 2026.
Fiscal Year 2025
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Q4 saw stable demand but lower margins due to currency, tariffs, and mix effects, with strong cash flow and nearly full-year cash conversion target achieved. U.K. sales dropped 11%, impacting profits, while efficiency and strategy updates are prioritized for 2026.
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Organic net sales grew 3.8% year-over-year, led by strong global sales and robust service business. Profitability improved with adjusted EBITDA up and cash conversion at 105%. Despite margin headwinds from tariffs and currency, a strong order book and cost efficiency support a positive outlook.
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Q2 2025 saw 3.0% organic net sales growth, led by double-digit gains in North America and a robust order book, despite margin pressure from tariffs and currency. Cash flow and EBITDA declined year-over-year, but management expects a stronger H2 2025.
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Q1 2025 saw 3.4% organic net sales growth, strong order intake, and improved gross margin, though profitability was impacted by currency headwinds and higher OpEx. New product launches and positive trends in key markets support a stable outlook within the 3%-5% growth target.
Fiscal Year 2024
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Q4 2024 saw solid sequential recovery, with 3.1% organic net sales growth and strong order intake, especially in North America. Profitability improved, gross margin expanded, and leverage decreased. Outlook for 2025 is positive, with growth expected within the 3%-5% target range.
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Organic growth reached 1.5% in Q3, below expectations due to weak capital sales in Europe and Asia, but service and rental businesses performed strongly. Gross margin improved to 42%, and leverage dropped to 2.2, with full-year growth expected at the lower end of the 3-5% target.
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Q2 2024 delivered 3.7% organic growth, improved gross margin, and over 10% EBIT growth year-over-year. Service and rental segments led gains, while Western Europe faced capital spend delays due to elections. Full-year guidance remains for 3%-5% organic growth.