Systemair AB Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : It's Carl here from Nordea. I have a few questions. First of all, if you could. I mean for -- you reported mid-single digit, if I remember it correctly, in the Nordics, organic growth, that is. I mean that is seemingly better than some of your competitors, I think. So first of all, I wonder whether you believe that you have gained market shares during Q1, and secondly, whether you have seen any changes in the demand after the Q1.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Yes. And do you still see a quite healthy demand in the market? Or have you seen any major changes?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. Very interesting. And as you said, you reported also strong organic growth in Americas. What's the driver behind that? You mentioned Canadian market. But if you could give us some -- on a product basis, some flavor at least. And also, if you expect the COVID-19 effect to hit you maybe later on.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Perfect. And you also reported a fairly strong EBIT margin, I must say, given the circumstances. Could you please help us to sort of understand the dynamics in it? I mean could you explain, for instance, the development within the AC business, Menerga? A little bit on the pricing as well, if you could help out with that.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : And do you expect the pent-up demand in the AC units is because people couldn't buy an air conditioning unit during the COVID-19 period or in the lockdown?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. Perfect. And the final one from my side, if I may. It is whether you still believe that you are on track to reach your 10% margin target. And -- I mean you communicated that you expect to reach it in 2 to 3 years. But I wonder given the current pace, at least the past 2 quarters, do you expect that you could possibly reach it even quicker than in 2 to 3 years? Or would we more see a flat development or a slower margin development ahead? How should we look at it?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : I'm especially impressed by the margin development. It is actually up from last year despite organic decrease in sales. You already spoke a little bit about it, but I'm still wondering, could it be a similar situation as one of your competitors? I mean whether they prepared for much worse drop in sales with heavy cost savings and then the quarter actually turned up better than expected?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : So you basically expect to keep most of the cost savings. Are you also looking at further potential for cutting costs? And do you have potential to do that?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : Yes. Then a question about Russia and this heavy drop there. This is against a strong growth a year ago. But was this mostly due to lockdown or any other issues in Russia? Because you then did mention it about -- among the countries that you are worried about.

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : And that is now, yes, fully open in Russia?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : And then a final -- then one more question. The Serum projects, when will they be booked, the first one especially? Is it already in your books?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : Yes. And then a final question, the net financial items that were negative this quarter. Which currencies affect you there mostly? Is it euro or anything else?