CEO’s comments
2025-03-06
Quarter 3 2024-25
The quarter shows organic growth of 5.4 percent. All regions except Eastern Europe grew during the quarter. Systemair's third quarter, covering the November–January period, is normally the seasonally weakest. This year's Christmas and New Year holidays brought fewer working days than usual in many of our factories and markets as a result of longer continuous holidays. Against that background, we are pleased to report an adjusted operating margin of 7.0 percent and a robust gross margin. Our consistent drive for continued organic growth and improved profitability is paying off.
The market
Demand showed positive growth in the third quarter and organic growth totalled 5.4 percent (0.1). With the exception of Eastern Europe, all regions report growth. The strongest performance was again recorded in the
Middle East, Asia, Australia and Africa region. Sales in North America also showed a positive trend, especially in Canada. In the Nordic region, sales were strong in Denmark and Finland. In Sweden, we are seeing signs
of recovery in the residential segment, although it
accounts for a smaller share of sales. In Eastern Europe, organic growth in the quarter was negative with the market adopting a somewhat cautious approach. In Western Europe, we are growing organically again, although we are still not seeing a recovery in the important German market.
Acquisitions & investments
We have recently completed a number of activities focused on laying the groundwork for future organic
growth. I Windischbuch in Germany, we have placed our new 4,500 m2 production and warehousing facilities on stream. At our residential units factory in Bouctouche, Canada, we have commissioned a new fully automated sheet metal processing production line. In Dal, Norway, and Milan, Italy, we are in the final stages of expanding our factories to step up production volumes. In the fourth quarter, we will inaugurate our new 19,000 m2 leased production facility in Hyderabad, India, to address the strong growth in the country.
Systemair has a strong balance sheet, which provides scope for further investments and strategic acquisitions, going forward. Our debt is low and we have a strong cash flow, which creates opportunities for both organic growth and acquisitions.
Sustainability
Our products make a significant di0erence in energy savings and indoor air quality. Reducing energy needs and thus emissions from buildings is one of society's most important issues for reducing climate impact. For society as a whole to achieve set climate goals, major investments will be required in upgrading ventilation in existing building stock.
We are continuing to invest in our own buildings for higher energy eHciency and lower emissions. In our recently completed production building in Ukmergé, Lithuania, we have chosen to install solar panels. We run the rule over the whole value chain to responsibly address the risks that exist, but also to seize the
opportunities that come with increasing demands for more sustainable solutions.
Outlook is favourable
Organic growth is back and order intake buoyant in several key markets, while we see potential for recovery in a number of other markets. On that basis, we expect the market to perform well, although uncertainty surrounds several geopolitical factors.
With well-invested production facilities in 18 countries and the market's broadest product range for energy-efficient ventilation, we have good conditions for long-term and profitable growth. A local presence with both sales and production companies in many markets means we are well equipped even during geopolitically uncertain times.
Roland Kasper
President and CEO
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Systemair has a well-proven business concept and business model, which is reflected in steadily increasing sales and profit. A large share of our profits are invested in a forward-looking way in increased production development, sustainability initiatives and strategic acquisitions.
