Aros Bostad: Higher margins than peers - ABG

Q4 sales +41% y-o-y, +6% vs ABGSCe
111 units started units, 1,182 units in ongoing production
GP margins holding up better than peers (18% in Q4)


Sales above, EBIT below

Aros Bostad delivered a Q4 report with sales of SEK 389m (+6% vs ABGSCe) with a GP-margin of 18.1% (ABGSCe at ~21.6%, company target at 20%). GP margins are lumpy between quarters (full-year 2023 figure of 19.8%) and peers have shown dramatic decreases in margins in the Q4 reporting season on the back of price cuts, which we do not see in Aros. Aros started 111 units and sold 22 units in the quarter, respectively. The share of sold apartments in ongoing construction continues to be high at 87% (89% as of Q3) thanks to the large share of sold rental apartments. It should however be noted that the sales ratio in ongoing construction excluding rental projects stands at 60%, which is comforting and cearly stands out positively compared to other developers. Reported net financial expenses amounted to -SEK 16m in the quarter (ABGSCe at -SEK 10m), but one should note that -SEK 6.6m relates to a loss of a sold project (Drabanten).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/aros-bostad/Equity-research/2024/2/aros-bostad---higher-margins-than-peers/