Alcadon: Strong report despite weakness in Denmark - ABG

Denmark slows while UK continues its strong trend
Adj. EBITA down 4-2% on lowered Danish estimates
11x '23e EV/EBITA (adj.), 18% '23e-'25e adj. EBITA CAGR


A solid Q1, but Denmark stands out on the negative side

Alcadon reported sales in line with our expectations but better margins, leading to an 8% adj. EBITA beat. Gross margins seem to have once again stabilised following last year's FX and input cost issues. Moreover, strong demand for data centres helped drive a continued solid performance in the UK, with the legacy market Sweden also reporting impressive numbers. However, in Denmark, where Alcadon has ~90% of sales from fibre-to-the-home (FTTH), there was a significant sales decline due to postponed projects.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/alcadon/Equity-research/2023/5/alcadon---strong-report-despite-weakness-in-denmark/