REDDITCH, England, May 8, 2024 /PRNewswire/ --


  • Net sales: MSEK 1,003 (1,127) - down -11% year-on-year with no major foreign exchange movements. Compared to Q4 2023 sales are up +9% in constant currency.

  • Operating income: Operating income was MSEK 137 (181) generating an Operating margin of 13.7% (16.1), up +1.6% from Operating margin before items affecting comparability of 12.1% reported in Q4 2023.

  • Net income for the period: MSEK 100 (121); basic EPS of SEK 2.69 (3.18).

  • Cash flow from operating activities: Cash flow from operating activities was MSEK 43 (89) with a profit to cash conversion ratio of 29% (61).

  • Group's net debt: MSEK 698 (865); gearing ratio of 30% (39). Loan repayments of MSEK 187 in the quarter.

President and CEO, Martin Kunz, comments on the Q1 2024 Interim Report.

Reduced operational costs and stabilised customer orders improved the Q1 Operating margin compared to the fourth quarter of 2023. Additionally, strong e-product sales contributed positively to the financial performance in this quarter.

Financial Performance

Our Group's reported net sales for the quarter were MSEK 1,003 (1,127), down by 11% year-on-year and our Operating income was MSEK 137 (181), resulting in an Operating margin of 13.7% (16.1).


Our customer's de-stocking activities diminished as we progressed through the first quarter of 2024, whilst the underlying market remained weak across most of our end-markets. All of our geographical regions, most notably our European and North American markets are weaker year-on-year by -15% and -9% respectively. However, sales of e-products were particularly strong this quarter, MSEK 244 (193) equating to 24% (17%) of Group sales and there were minimal year-on-year foreign exchange movements.

The cost-saving measures implemented during the third and fourth quarters of 2023, which are largely completed, combined with higher sales in the quarter, particularly in our Hydraulics division, have enabled us to improve our underlying Group Operating margin by 1.6% compared to the previous quarter. Quarter-on-quarter sales and Operating margins in our engines division remained relatively flat, whilst our Hydraulics division reported a sales increase of 14% and Operating margins improved significantly to 14.8%, up 5.2% from the fourth quarter of 2023. Alfdex, our joint venture with Alfa Laval, experienced headwinds this quarter, particularly in China where the truck market remains weak. Our share of income from Alfdex this quarter was MSEK 13 (17).

As is typical with our annual business cycle the cash flow in the first quarter of the year is generally the weakest, both in absolute terms and the cash conversion ratio, this quarter was no exception with our cash flow from operating activities being MSEK 43 (89), which represents a profit to cash conversion ratio of 29% (61). The cash flow from operating activities was impacted by a working capital increase MSEK 98, caused mainly by increases in our inventory levels and our customers delaying payments into the second quarter.

We have continued to repurchase our own shares during the quarter totalling MSEK 44, bringing the total own shares purchased under this announced scheme to MSEK 144. We also repaid some of our outstanding debt in the quarter totalling MSEK 155, reducing our cash and cash equivalents balance to MSEK 515 (636) as at 31 March 2024.

Executing our Strategy

This quarter has once again seen us make significant strides in the execution of our strategic plan. While our investment plan to enhance our Pune plant for future growth is underway, our Indian team has successfully launched the production of coolant pumps for our first domestic on-highway customer. Additionally, investment in the new manufacturing line in Escanaba, North America, has been largely completed and we have started serial production of our new and innovative high-voltage fans for our North American customers.


The Book-to-bill ratio for the Group this quarter is 92% and broadly similar in each of our reporting divisions. Based on this and other available information, we continue to estimate that our end-markets will be weaker during 2024. As a result, we expect net sales in the second quarter of 2024 to be broadly similar to the net sales achieved in the first quarter of 2024.

We continue to monitor the sales order intake levels, particularly for the second half of 2024 and will continue to take the necessary cost action in a timely manner to ensure we deliver strong Operating margins during this challenging economic cycle.

For further information, please contact:
Martin Kunz (President and CEO) or Marcus Whitehouse (CFO) at
Tel: +44 121 445 6545 or E-mail:

The information in this report is of the type that Concentric AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 08.00 CET on 8 May 2024.

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SOURCE Concentric AB