Beijer Ref: Beijer Ref AB (FRA:BRZ0) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amidst Market ...

In This Article: Release Date: April 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Beijer Ref AB ( FRA:BRZ0 ) reported a total sales growth of 16% with organic growth at 4%, indicating stable performance across global markets. The company achieved an EPS growth of 20%, reflecting strong profitability. The HVAC segment showed a 6% growth, contributing positively to the overall performance. Beijer Ref AB ( FRA:BRZ0 ) maintained stable cash flow and reduced financial liabilities, showcasing effective financial management. The company is expanding its market presence with strategic acquisitions and opening new branches, particularly in the US and APEC regions. Negative Points Cash flow growth is underperforming compared to the top-line growth, indicating potential inefficiencies. There is margin dilution from recent acquisitions, which may impact profitability in the short term. The company faces challenges from adverse weather conditions in the APAC region, affecting growth. The transition to new refrigerants in the US market could lead to increased costs and pricing challenges. Beijer Ref AB ( FRA:BRZ0 ) is experiencing margin pressure in the EMEA region due to heat pump dynamics. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with FRA:BRZ0. Q : Can you provide insights into the impact of recent price increases by OEMs in the US market? A : We have observed price increases from OEMs, which are being passed on to customers. The impact on revenue is minimal, as the increases are roughly around 1%. Our business model allows us to pass on these price increases effectively. (Unidentified_1) Q : What is the current status of the M&A pipeline in the US, and are there any plans to pause acquisitions due to market uncertainties? A : We are not putting acquisitions on hold. Instead, we are aligning with market conditions and continuing with our strategic plans. (Unidentified_1) Q : How are you managing the transition to new refrigerants in the US, and what impact do you expect on market share? A : We are well-positioned for the transition to new refrigerants, with a competitive solution in place. We expect to gain market share as the transition progresses, supported by our strategic inventory build-up and customer engagement. (Unidentified_1) Q : Can you elaborate on the impact of adverse weather conditions in the APAC region and how it affected growth? A : Despite adverse weather leading to branch closures for 3-4 days in Australia, we achieved 7% organic growth in the APAC region. The underlying business pace remained strong, similar to Q4 levels. (Unidentified_3) Q : How do you anticipate the impact of the A12 refrigerant transition on your US business in terms of sales and margins? A : The A12 transition is expected to ramp up, with 10-15% of our Q1 sales in equipment being A12. We anticipate this to increase to around 50% by June. The transition should support stable margins, with the potential for improved profitability as the transition progresses. (Unidentified_1) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus .