Fluidra SA Q2 2022 Earnings Call Transcript

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

Question: Christoph Greulich - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Two from my side, if I may. Just firstly, maybe if you could say a few words on the [contracts] you have been seeing in July. I mean you have had pretty hot weather across some of your key regions. Or I mean if you could say a few words and if you've seen an impact on the demand trends there. And then maybe the second one, coming back to what you just said on the margin. So just to kind of get a feeling for what you think is the reasonable assumptions on what we can expect for 2023. Will it be like a year margin-wise similar to 2021? Or is there still some kind of drag from the inflation side? And then on the simplification program, so the EUR 60 million that you target for the next 3 years, will that -- those efficiency gains be unlocked in a kind of linear way? Or is it more kind of skewed towards the end of the time period?

Question: Christoph Greulich - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : That's very helpful. Maybe if I could just ask one more question on the inventory correction that basically is happening across the industry. Would you say that your vertical integration and the fact that you're doing some of your own distribution, it somewhat mitigates that effect compared to other competitors that are purely an OEM?

Question: Erik Salz - JPMorgan Chase & Co, Research Division - Analyst : (inaudible) have been answered already, but maybe a few more. Is it -- just an understanding of the normalization of the inventory, is it realistic to think that this will be 2022? And is reducing production on your own behalf, is this one of the levers to reduce that inventory?

Question: Erik Salz - JPMorgan Chase & Co, Research Division - Analyst : Your inventory correction. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2022 / 9:00AM, FLUI.MC - Q2 2022 Fluidra SA Earnings Call

Question: Erik Salz - JPMorgan Chase & Co, Research Division - Analyst : Okay. And then on M&A, is the Swim & Fun cash out, is it already reflected on the cash flow? And a more broader question on M&A is why are you still considering doing M&A in this environment?

Question: Erik Salz - JPMorgan Chase & Co, Research Division - Analyst : (inaudible)

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : So my first question is on the different moving parts of the upgraded revenue guidance in the sense that on the central scenario, you're basically increasing 200 basis points, your revenue expectations for the full year. So my question here is whether this is a combination of, let's say, higher than [inspector FX], a little bit of pricing offsetting lower volumes. That should be the correct way of the different moving parts here?

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : Okay. And my final question then is on the expectation -- the theoretical expectations for next year. It looks like booming housing prices, it's picking, and also the value of houses are starting to decline. So in this context of, let's say, normalization, should we also expect a decline in the average ticket of both the new builds and the average is paying per unit on the aftermarket? So it will be not only be a normalization volume-wise, but also pricing-wise?