CEO’s comments
Quarter 2 2024-25
Good occupancy in several of our factories, a
favourable product mix and effects of previously
implemented cost adjustments lead to a continued
strong gross margin and a good operating margin of
11.0 percent.
During the second quarter, which is our strongest
seasonally, we have positive organic growth of +2.6
percent. All regions, except for Western Europe,
show organic growth during the quarter. In the
quarter, we also see stable development in several
markets outside Western Europe and the Nordics.
The market
Demand in the second quarter was strong, with
organic growth of 2.6 percent (5.1). All regions, with the
exception of Western Europe, show growth over the
period. The strongest growth was recorded in North
America, where sales to the residential segment in
Canada performed very well. Sales in the Nordic
market also increased during the period due to growth
in Norway. However, sales in the rest of the Nordic
region decreased slightly during the quarter. In Eastern
Europe, organic growth is, above all, driven by project
sales to large industrial projects. In the Asia region,
developments in India are especially pleasing, with
strong growth over a long period. In addition, during
the quarter, we succeeded in securing future
production capacity by tripling our factory space at
Hyderabad.
Acquisitions & investments
Several activities are currently in progress to optimise
and develop existing operations, with focus on organic
growth. In Germany, we inaugurated our new 4,500 m2
production and warehouse building during the quarter.
The expansion of the facility came at a very good time,
as the factory is currently engaged in a major project
delivery of large fans for the Delhi Metro. In
Bouctouche, Canada, we have reached the final stages
of commissioning a new fully automated sheet metal
processing production line, and in Norway an
expansion of our Dal plant to increase efficiency is in
progress. We have changed our distribution in Norway,
centralising the logistics flow to Dal.
Systemair has a strong balance sheet, which provides
scope for further investments and strategic
acquisitions in future. We have sharply reduced our
debt, and our cash flow remains strong.
Sustainability
Our products make an important difference to energy
saving and indoor air quality. Reducing energy demand –
and thus lowering emissions from buildings – is one of the
most important issues facing society, if climate impact is to
be reduced. Achieving climate targets set will require major
investments in upgrading ventilation in the existing building
stock.
We are now in the final stages of setting science-based
emission targets (SBTi), which confirms that we are taking
our responsibility in mitigating climate change in both the
near term and for net-zero emissions in the future.
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
Overall, our order intake is currently good. Major
projects are having a positive impact on the
situation. We therefore anticipate further positive
developments in the market, as market interest
rates fall, and inflation targets are met.
With our well-invested production facilities in 18
countries and the broadest range of energy-efficient ventilation products on the market, we are well equipped for continued long-term, profitable growth.
Roland Kasper
President and CEO
Explore and read more about:
Reports & Presentations
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.
