DistIT: Low base creates conditions for growth in '25 - ABG

Conditions remain stable but unfavourable
We cut '25e-'26e sales by 9-8% due to the divestment
'25e-'26e EV/EBIT 18x-9x


What to expect in Q4'24

We anticipate Q4'24 sales of SEK 419m and EBIT of SEK -2m, down from our previous estimates of SEK 447m and SEK 4m, respectively. The estimate cuts are based on continually weak consumer sentiment and peers such as Dustin showing soft momentum. Conditions are challenging for both Aurdel and Efuel, as both are facing a less spending-prone consumer, but comps are getting increasingly easy, and we get the impression that demand exists for Aurdel's branded products. Hence, the recent divestment proceeds should be value-accretive. We expect operating cash flow of SEK 3m with working capital releases of SEK 9m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/distit/Equity-research/2025/2/distit---low-base-creates-conditions-for-growth-in-25/