Dedicare: Continues to grab market share - ABG

Another impressive quarter in Norway
Denmark is also gaining momentum
Growth initiatives hurt profitability in Q4


Q4: Sales growth of 41% y-o-y (34% organic)

Dedicare reported another impressive quarter with sales of SEK 504m (378m), 17% above ABGSCe. The beat was mainly driven by continued excellent performance in Norway, where sales growth re-accelerated to 53% y-o-y when the Norwegian market slowed to 19% growth y-o-y in total. It means that Dedicare is rapidly taking market share in the country from its already leading position. Sales growth in Denmark also accelerated further from Q3 and Dedicare now reported y-o-y growth of 31% y-o-y (up from 27% in Q3). Sales in Sweden was also ahead of our forecast but not to the same extent. Overall, we expected a slowdown in a seasonally weaker quarter, but demand exceeded our expectations. Despite being 17% above our sales forecast, adj. EBIT of SEK 34m (26.2m) was in line with ABGSCe: mainly because Dedicare took some growth initiatives in Norway and prioritised growth over margin in Denmark.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/dedicare/Equity-research/2023/2/dedicare---continues-to-grab-market-share/