The following is a summary of the Mullen Group Ltd. (MLLGF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Mullen Group's Q1 2024 revenue was $462.6 million, down $35.2 million year over year owing to fewer workdays in the quarter and a decline in revenue per workday.
The operating margin fell to 14.3% from 15.5% due to an increase in S&A expenses.
OIBDA decreased to $66.2 million from last year due to a drop in consolidated revenues partially offset by incremental OIBDA of $3 million from new acquisitions.
Revenue saw a boost of $20.5 million from acquisitions made in 2023, including the B&R Group.
Business Progress:
Despite market slowdown, the outlook for the LTL segment stayed steady due to the acquisitions that provide growth and margin improvement.
On anticipating improved revenues following an increase in consumer disposable income, Mullen Group still views the downtick as an opportunity for them to leverage their robustness and agility through acquisitions.
The company focused on cost control and reduction and saw margin improvements for the LTL sector through consolidations.
B&R Eckel's acquisition added to the revenues but not to the EBITDA, which is expected to change due to restructuring and better load factor after consolidating routes.
They aim to secure long-term funding, and focus on mergers for efficiency while the acquisition of ContainerWorld is expected to improve profit margins over time.
More details: MULLEN GROUP LTD IR
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