Fagerhult Group faced another decline in its quarterly financial results, with even the order book experiencing a dip. However, CEO Bodil Sonesson remains optimistic, citing eco trends as a strong outlook and attributing the order decline to factors such as the timing of an early Easter holiday and a robust previous year's quarter.
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Despite this setback, the company from Habo, Sweden, mentioned its exploration of acquisitions, with a potential focus on a technology firm that complements Fagerhult's connected lighting platforms, Organic Response and Citygrid.
In the first quarter ending March 31, sales dropped by 2% (or 2.2% adjusted for currency) to SEK 2.18 billion ($201.6 million) compared to the same period last year. Net profit also declined by 12.4% to SEK 138.3 billion ($128.2 million) from SEK 157.9 billion in the first quarter of 2023.
Although previous optimism suggested that increased order activity would reverse the financial decline, this did not materialize in the first quarter. Orders, along with sales and earnings, also experienced a decline, totalling SEK 2.1 billion ($194.2 million), a decrease of 3.5% (or 3.3% adjusted for currency) compared to the previous year's quarter.
CEO Bodil Sonesson attributed the decline to significant projects in the previous year's quarter and the Easter effect, which slowed down order intake towards the end of the quarter. However, with the holiday period over, order levels began to recover at the start of the second quarter.
Sonesson highlighted the business opportunities in providing smart lighting for renovation and retrofit projects in Europe, particularly with the strengthening of the European Energy Performance of Buildings Directive. .
Additionally, Fagerhult is developing bio-based products and reducing carbon emissions across its operations. The company is also actively pursuing acquisitions to expand its global presence and enhance its product portfolio, focusing on complementary technologies and smart lighting solutions.
Source: www.ledsmagazine.com