BTS Group: Strong start to 2022, guidance intact - ABG

6% sales and 20% EBITA beat vs ABGSCe in Q1
Guidance intact: “2022 adj. EBITA to be better than 2021”
Estimates likely up 2-5%, share at 19.5x 202e adj. EBITA

Q1 details
Sales SEK 524m (6% vs ABGSCe 493m, no cons), adj. EBITA 56m (20% vs ABGSCe 47m), adj. EBITA margin 10.8% (ABG 9.6%). FX adjusted growth 24% (vs ABGSCe 19%), organic growth 21% (vs ABGSCe 15%).

Quality beat in Q1 driven by North America and Europe
Beat driven by all regions on sales (2-8% vs ABGSCe) while the EBITA beat stems from North America and Europe. As a result of the solid start to 2022, BTS reiterates its 2022 guidance of “better adj. EBITA than 2021” vs ABGSCe 19% adj. EBITA growth. BTS has terminated all customer and supplier connections in Russia, affecting Q1 sales by -1%. Inflation significantly affects BTS and it works with price optimisation and cost-efficiency has made it possible to handle the inflation so far, according to the company. BTS has not seen any signs of reduced demand due to the worsening economic situation, yet.

Estimates up 2-5% for consensus
We estimate that consensus will raise EBITA estimates by 2-5% for 2022-24e. A strong report, quality beat from main regions on both sales and EBITA. Share is trading at 19.5x adj. EBITA 2022e and as estimates likely will come up for consensus today, the share should perform well vs the market. Conf call at CET 9.00.
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Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/bts-group/Equity-research/2022/5/bts-group---strong-start-to-2022-guidance-intact/