Hexatronic Group AB reported strong cash flow and positive growth in new focus areas

From GlobeNewswire: 2024-07-16 01:00:00

Hexatronic Group AB (publ) reported strong cash flow and some recovery in Fiber Solutions in the second quarter of 2024. Net sales decreased by 10% to 2,024 MSEK, organically dropping by 18%. EBITA decreased by 45% to 222 MSEK, with a margin of 11.0%. Net income fell by 66% to 89 MSEK.

Key developments include the positive growth of new focus areas Harsh Environment and Data Center, with a strong organic and acquisition-driven growth in the second quarter. The net debt-to-EBITDA ratio stood at 2.2x, compared to 1.7x at the end of 2023. Operating cash flow reached 221 MSEK.

During the quarter, Hexatronic made changes to its leadership team and announced strategic partnership with NOVOS FiBER in the US market, expected to generate around 400 MSEK in sales over three years. The company’s new focus areas are showing positive growth and contributing significantly to its revenue.

In the second quarter of 2024, Hexatronic saw a sequential sales growth of 14%. Despite continued price pressure, the company’s profitability strengthened to 11.0%. The sales within Harsh Environment and Data Center increased significantly, accounting for around 27% of total sales. The company is focused on strengthening its offerings within these areas.

Looking ahead, Hexatronic anticipates continued strength in the Harsh Environment and Data Center markets, driven by investments in defense, energy, and AI. The Fiber Solutions market is expected to remain weak in the third quarter with a gradual recovery expected later in 2024. Strong underlying trends support the continued expansion of fiber optic systems globally. Hexatronic remains optimistic about its growth journey.



Read more at GlobeNewswire:: Hexatronic Group AB (publ) Delårsrapport januari – juni