Loomis AB (publ) (OTCPK:LOIMF) Q1 2025 Results Conference Call May 7, 2025 4:00 AM ET
Company Participants
Aritz Larrea – President and Chief Executive Officer
Johan Wilsby – Chief Financial Officer
Conference Call Participants
Simon Jonsson – ABG Sundal Collier
Suhasini Varanasi – Goldman Sachs
Viktor Lindeberg – Carnegie
Karl-Johan Bonnevier – DNB
Aritz Larrea
Thank you very much. Good morning, everyone, and welcome to the first quarter presentation for Loomis. My name is Aritz Larrea, and I’m the CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby; and Jenny Bostrom, our Head of Sustainability and Investor Relations.
I’ll start by providing a quick summary of our Q1 performance before taking questions. Let’s start the presentation by turning to Slide 2. Loomis had a solid start to the year with organic revenue growth of 4.4% in the first quarter. We achieved revenues above SEK7.6 billion, with growth across our 3 reporting segments. Notably, our International business line performed exceptionally well, and we also saw double-digit growth in our Automated Solutions and FX business lines.
Acquisitions had a limited impact on total growth, while currency effects had a slight positive impact. A favorable business mix and increased efficiency resulted in an improved operating margin of 11.6%, up from 10.4% in the prior year. We have successfully grown the business while reducing our employee count, supporting this margin expansion.
Our operating cash flow this quarter was exceptionally strong. In the first quarter, operating cash flow represented 112% of our EBITA. And over the past 12 months, our cash conversion reached 124%. This performance was driven by improvements in working capital, optimized capital expenditures and higher EBITA. Our robust cash conversion enables us to invest in our business and distribute return to our shareholders.
As we announced yesterday, we
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