Coor: On track to deliver profitability gains - ABG

We raise adj. EBITA by 2-1-0% on '24e-'26e
Adj. EBITA expected to grow 12% y-o-y in H2'24e
10-8x EBITA on '24e-'26e (8-12% FCFy), ~10% below peers


Denmark drove EBITA beat in Q1

Coor delivered solid Q1 numbers with sales in line with ABGSCe and FactSet consensus while the adj. EBITA was a bit higher than expected (SEK 160m, +7% vs. ABGSCe, +2% vs. consensus), mainly driven by Denmark where adj. EBITA increased 16% y-o-y, although positively impacted by retroactive volume adjustments, while Norway was weaker (-14% y-o-y), in part because of higher cost in the offshore operations due to poor weather conditions. All in all, the adj. EBITA grew 5% y-o-y while organic growth was 2%. Note, however, that the growth is still negatively impacted by the Ericsson contract (~5% sales loss), which will impact growth for two more quarters. From H2'24, we expect the recent inflow of new contracts to lead to accelerating growth again.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/coor/Equity-research/2024/4/coor---on-track-to-deliver-profitability-gains/