The following is a summary of the Fuchs SE (FUPBY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Fuchs SE reported slightly lower sales in Q1 2024 due to lower pricing compared to Q1 2023 and the impact of currency effects.
EBIT for Q1 2024 increased from the previous year, driven by all regions.
Gross margin for Q1 expanded close to 3% points from the previous year, credited to good price management and operational excellence programs.
Fuchs SE is on track to meet its midterm target of a 15% EBIT margin.
Net liquidity remains healthy, even with the expenditure of EUR 33 million on a share buyback program in the quarter.
Business Progress:
Fuchs SE acquired the LUBCON Group, strengthening its position in the Specialty Products segment.
There was a positive development in profitability within the EMEA region during Q1 2024, with an 8% increase in EBIT.
The company plans to reach an all-time high in revenue of EUR 3.6 billion and EBIT of EUR 430 million for 2024.
Fuchs SE anticipates volume growth over the year, with Q2 expected to show higher order delivery.
The company will implement the S/4HANA system and the group-wide program, FUCHS goes digital, with costs already included in their guidance.
They aim to improve their gross margin, which will depend on pricing and raw material costs, and manage their working capital diligently.
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