CTEK Q1 2025, Summary

CTEK Reports Q1 2025 Results: Consecutive Growth and First Positive EBITDA for Professional Division

CTEK, a leading provider of battery management solutions, announced its Q1 2025 financial results, highlighting four consecutive quarters of growth and a significant milestone for its Professional Division.

Robust Financial Performance

  • Revenue: 213 million Swedish Krona, reflecting an organic growth of 5%

  • Gross Margin: Strong at 56.4%, attributed to a favorable product mix

  • EBIT: 19 million Swedish Krona, impacted by non-realized FX impacts

  • Cash Flow: 8 million Swedish Krona

  • Net Debt Ratio: 1.9, indicating a stable financial position

Divisional Highlights

The Consumer Division continued its momentum, growing for the seventh consecutive quarter, driven by strong sales in North America and online channels.

Notably, the Professional Division achieved a positive EBITDA for the first quarter since its inception. This success stemmed from robust sales to a major European motorcycle manufacturer under the Client Brand segment and improved margins on the newly introduced CC3 EV charger.

Strategic Focus and Outlook

Having successfully navigated the first two phases of its strategic plan – creating stability, cost control, profitability, and organic growth – CTEK is preparing to enter the third phase of accelerated growth. Details will be shared at the highly anticipated Capital Markets Day on May 22nd.

Henrik Fagernäs, CEO of CTEK, expressed confidence in the company's readiness for the next phase, stating, "We have a very stable financial situation, and our net debt ratio is well below our financial targets. We are ready for our next phase, which we will present on our Capital Markets Day, the 22nd of May."

With its focus on innovation, premium partnerships, and a diversified product portfolio spanning electric vehicles, combustion engines, RVs, and industrial applications, CTEK is poised for continued success in the rapidly evolving battery management market.


This summary was written by our AI Analyst Tim! If you find something that does not seem right let us know and we will correct him.

Thank you, operator, and a warm welcome to all of you to today's Q1 presentation for 2025 for CTEK. The presenters today is myself, Henrik Fagernäs, and our CFO, Tom Mattison. And as always, I start with a short recap of CTEK. CTEK was founded more than 25 years ago by Bengt Wallvik, the happy guy on the picture, and he invented the first ever smart charger with pulse technology. We are delivering, we are developing and testing and designing everything in Sweden, and we have production mainly in Asia and China, but also in Malaysia. We have more than 50 premium brands that are choosing CTEK as their charger. And I'm very proud to show the Lamborghini that is actually co-branded with CTEK, which is extraordinary and says a lot about our quality. CTEK has mainly two different technologies. We have the EVSE technology where we are focusing on destination charging, and then we have our low voltage, where we are present in different segments as consumer, professional, workshop, client, brand, and integrated solutions. You will find CTEK in a vast area of different usage alternatives for the electrical vehicles and plug-in hybrids. We can sell our EV chargers, of course, but also our 12 volt chargers and our workshop chargers. For the combustion engines, we have our 12 volt chargers and our workshop chargers. And for RV and leisure like motorcycle, camper vans, etc. We have our low voltage and also our integrated solutions. And for industrial, we have integrated solutions. We are distributing in mainly two divisions. We have a professional divisions that is focusing on business to business. They have the OEM car brands and also big parking operators and charge point operators. And then we have a consumer division, which are selling into retail and e-tail. So then over to the first quarter of 2025. We were growing for the fourth consecutive quarter and the sales or Revenue came in at 213 million SEK, which is a growth organic growth of five percent. Gross margin ended up at 56.4%, very strong due to a good product mix. EBIT, 19 million SEK, impacted by non-realized FX impacts. And cash flow, 8 million SEK. And we came in on a net debt ratio of 1.9, so very stable financial situation. if we look a little bit more deeper into the figures, we have a consumer division, which was actually growing for the seventh consecutive quarter, strong sales in North America, strong online sales. And so our, our efforts there is paying off. I'm very happy to say that the professional division showed a positive ebitda for the first quarter since we started the division. And that was due to growth in client brand, where we had good sales to Europe's biggest motorcycle manufacturer. And we also see better margins on our newly introduced CC3 EV charger. So with this, I think we are very good placed for soon entering into our third phase and we will talk more about that in our capital market day the 22nd of May. So with that, I leave over to you, Tom. Yes, thank you, Henrik. So some more words around the financials and I go a step down to the divisions. And as you can see, the consumer division, the growth on the upside right, you can see that stands for more than two-thirds or around two-thirds of the turnover of the company. Here we have grown again organically with 7% with a stable and good EBITDA margin of around 35%. So continuous good performance in the consumer division. Coming over to the professional division, which stands for one third of the turnover of the company, we are happy to say that we have the first profitable quarter since we started the new organization in end of 2023 with a positive EBITDA of around 6%. That comes, as Henrik mentioned, both from the strong low voltage sales to the we customers, but also from improved margins on the EVSE side of the business. Around cash flow and CapEx, which is quite important areas, of course, for a company like CTEK. We continue to have a positive cash flow from operating activities, a bit less than last quarter one last year, but that is mainly reflecting some bigger payments in and out that is periodical impact of that. So as we mentioned a little bit later in this, in the fourth bullet, we see a long-term positive cash flow trend. That also means that we did an extra amortization of our loan with 25 million euro period. CapEx, as we have said before, it's Now coming back on the more normal levels, around 8% so far this year of the turnover. And we over time see that being somewhere in the area of 6-8%. Net debt ratio also an improvement versus quarter one last year from down to 1.9 for 2.2 at the end of quarter one last year. So by that, I hand it over to you again. Thank you, Tom. So to summarize the quarter, moving back to our strategic plan that we put together a little bit more than one and a half year ago, and we put it into three phases, where the first phase was to create stability and cost control. We left that phase a year ago, and we are now well into phase two, which is profitability and focus on organic growth. We have now showed four quarters of organic growth and we are getting ready to talk about a more accelerated growth, which we will present at our Capital Market Day the 22nd of May. So most welcome and I hope to see you all there. Going them into the quarter again, As I mentioned, fourth quarter of consecutive growth for the group and seventh quarter of consecutive growth for Consumer Division. First ever quarter with positive EBITDA in Professional Division, and that relates to high sales of client brand and also a better gross margin for our newly introduced CC3 EV charger. So we have a very stable financial situation and net debt rate you well below our financial targets. So we are ready for our next phase, which we will present on our Capital Market Day, the 22nd of May. And with that, I open up for questions. To ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, Please dial 6 on your telephone keypad. The next question comes from Johanna Eliasson from Kepler Cheuvreux. Please go ahead. Yeah, hi, this is Johanna at Kepler Cheuvreux. I have a question just regarding your North American exposure. You mentioned that as a growth driver in this quarter. How big is North America for you today now when the GM contact is out of the numbers? And how do you supply it? Basically, that's my first question. Good morning, everyone, and thank you for a question. North America was last year without GM a little a bit less than 10% of our total sales. We moved the production to move the production to Malaysia for 80% of our total, of 80% of our products to Malaysia. The tariff is hard to foresee, but my judgment today is that we are in a pretty good spot. I think it's neutral due to competition, because I do not believe that there is anyone producing locally in America and all our competitors are producing in Asia. And with the move to Malaysia, I think we are in a relatively good spot as it is today. That's the question that you say 80% Malaysia, is that for the North American sourcing or is that for your total sourcing? No, that is for the North American sourcing. Yeah, okay, excellent. Well, I'm looking forward to the 22nd of May, so I have no further questions right now. Thank you very much. Thank you, Johan. Reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Matthias Arenborg from Redeye. Please go ahead. Yes, good morning. I'm Tom Matthias here from Redeye. First off, I just want to congratulate on a solid quarter. A few questions from my side. Could you share if there is a main driver behind the positive EBITDA in the professional segment? Or is it more a general result from your cost savings and I guess overall solid demand in all product categories and customer groups? Good morning, Mathias. Yes, it is. We have reduced the cost quite significantly in that division. And as we mentioned previously, it's up to getting volumes now to get a positive EBITDA. And that we managed to do in the first quarter. So it was a good growth in client brand, which is the low voltage chargers for our premium customers. But we also had a stable sell out of our EV-SE destination. So if we remove the GM contract, we have a stable sell out of EV-SE destination with a better margin, which also helps to have a positive EBITDA. Okay. And did you have any positive one-off effects from the discontinued GM contract in this quarter? No, not at all. Okay, excellent. I think this already has been answered a bit in the previous question, but could you describe your US business in the quarter and how your customers are feeling in the region? If we start with the quarter, it was very good sentiments. We had high sales, especially on our online channels. We managed, when with the move, we managed to reduce our pricing a bit with kept margins and that we saw positive take up from our customers in North America. So as I mentioned before, 80% we have now produced in Malaysia and at the moment the tariffs from Malaysia is 10%. We don't know how that will develop, but it's relatively good. for us compared to some of the competitors, I think. So we look, we look positive about that. Then, of course, it's very hard to say anything about the future and the sentiment of our customers and consumers in North America at the moment. Yeah, I understood. And if you just, just look at the q1 numbers, you had the $17 million roughly in sales from America and you had $21 million in Q1 last year. If we remove the GM volumes from last year, what would be a representative number, would you say? In North America specifically? Yeah, exactly. So if we remove the GM numbers from there, it's 21 million. We don't reveal that on that detail, but I can say that we had a good sales development if we clear for GM activities. Okay. Okay, excellent. And thank you. And then if we move over to the DAC region, it grew by, yeah, I think nearly 60% year over year, which looks very high. what are the reasons behind this development in the quarter? We had also a very strong online sales, but also our professional workshop chargers are developing really, really nicely, and especially in the DACH region. Okay, so there aren't any timing effects that enter Q4 last year, for instance, instead of going to Q1, It's just poor, pure demand driven, would you say? It's very hard to say if it's timing effects, because you always have, there could be timing effects between the quarters. But we are, of course, closely monitoring the underlying sellout at our, especially our big online or e-tailers. And we see a very healthy growth. in those figures. Okay, thanks. And just regarding the development for the CC3, especially in the UK then in the quarter, what was the development like and what do you expect now heading into the summer months? If we take CC3, our short-term connected free, It has been very well received by the customers. The UK sales have not really taken off yet. So it's hard to say we are working closely with our customers in UK and also in Scandinavia. And later on we will also launch it in Germany, as you know. But so far we have seen a stable demand in a very turbulent times. Okay, thank you, understood. And just a final question then from my side, could you expand a bit on the Q1 net finance of minus 30 million? I say, look at quite high Yeah, I can take that question. So it's actually we are impacted both in financials and net finance net and on the operating result of non-realized FX impacts. You know, when the Corona has been stronger against both US dollars and euros. we have some impacts on that. And on the finance net, it's primarily that we have quite a lot of euros on our accounts and they are evaluated to one krona less per euro than during the quarter. So that's its main impact. So around 8-9 million of that impact is just non-realized FX impact. Okay, thank you. That was very clear. Okay, that was all from my side. Thank you very much for taking all my questions. Yeah, thank you, Mathias. Thank you, Mathias. More questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you very much for listening in to our Q1 report and looking forward to see you the 22nd of May in Stockholm. Thank you so much. Bye-bye.

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