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OEM International Posts Record Q2 Sales and Profit on Acquisition Strength
Swedish technology trading group OEM International reported record-high second-quarter sales and earnings, fueled by a successful acquisition strategy and solid organic growth. The company's net sales climbed 17% year-over-year to SEK 1.56 billion (€136 million), exceeding a consensus analyst estimate of SEK 1.52 billion, according to its latest financial release.
Acquisitions and Margins Drive Profitability
The top-line growth was nearly evenly split between underlying business performance and recent buyouts. The company attributed 8% of the sales increase to organic growth, while acquisitions contributed the remaining 9%.
Profitability metrics also reached new highs. Earnings before interest, taxes, and amortization (EBITA) surged 37% to SEK 241 million. The EBITA margin consequently expanded to 15.4% for the quarter, a significant improvement from the 13.2% reported in the same period last year. OEM International credited the margin improvement to a higher gross margin.
AdStrong Order Intake Signals Momentum
Forward-looking indicators suggest continued demand, with incoming orders growing 23% to SEK 1.68 billion. This order growth rate outpaced the company's sales growth for the quarter, indicating a healthy pipeline. The strongest contributions to the order book came from the Rest of Europe, Finland, the Baltic States, and China.
For the quarter, OEM International reported earnings per share of SEK 1.26. The company did not provide a specific financial outlook for future quarters in its press release.