Christian Berner Tech Trade: Strong growth but increased costs hurt margins - ABG

Sales SEK 248m, EBITA 5m, margin 2.2%
High organic growth of +27%
EBITA suffers from increased costs (SEK 4m)


Q4 results

Sales came in at SEK 248m (+25% vs. ABGSC 198m), +29% y-o-y (+27% organic). EBITA was 5m (-28% vs. ABGSC 7m), and adj. EBITA was 5m (-28% vs. ABGSC 7m) for a margin of +2% (ABGSC +4%). Adj. net income was 2m (-57% vs. ABGSC 4m) for a margin of +1% (ABGSC +2%). The company produced lease adj. FCF of 11m. Stronger organic growth than expected due to strong demand, order intake of SEK 258m, up 28% y-o-y. EBITA suffers by 4m due to increased costs in projects priced before recent price increases. Adjusting for this would give EBITA of SEK 9m and a margin of 3.8%. Even without adjustments this is still an improvement over last year's -2.3%. The company restructured its reporting segments into “Technology & Distribution” and “Energy & Environment”. These segments reported sales of SEK 151m and 100m, growing 37% and 5.6% respectively, with EBITA margins of 4.9% and 1.4%

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/christian-berner-tech-trade/Equity-research/2023/2/christian-berner-tech-trade---strong-growth-but-increased-costs-hurt-margins/