BTS Group: Slightly better than expected - ABG
Q2 details
Sales SEK 730m (-1% vs ABG 740m, 0% vs cons 730m), adj. EBITA 110m (1% vs ABG 109m, 8% vs cons 102m), adj. EBITA margin 15.1% (ABG 14.8%, cons 14.0%). FX adj growth 3% (vs ABG 7%).
North America beat while Europe the weak spot
North America and Rest of World were better than expected and in line, respectively, while Europe weaker (sales down 23% y-o-y) amid cautious customers and longer sales cycles across several markets. Cost reductions have played out well and provide a good set up for earnings growth in 2024 on group level. BTS reiterates its FY guidance of “2024 EBITA will be better than 2023” as expected (cons has 10% EBITA growth), which includes the recent acquisitions of Wonderway and SEAC as well (adding ~3% to group sales).
Estimates and share slightly up
We expect consensus to raise EBITA estimates by 2-4% (underlying + M&A), and share should be up slightly up today. The share is flat YTD and trades at 16.0x EV/EBITA 2024e on our unrevised estimates. Conf call CET 8.00.
