Elanders: Demand clearly slowing, but it's raining cash - ABG

• Adj. EBITA down 5% on lower top-line estimates
• Cash flow remains strong despite softer earnings
• '23e-'25e cumulative lease adj. FCF yield of ~60%

Demand clearly slowing, should continue in H2
The Q2 report marked a clear deceleration of demand across several customer segments, including the previously fast-growing Fashion & Lifestyle. Organic growth therefore amounted to -9% (ABGSCe -1%), to a large extent due to lower freight rates hurting Supply Chain Solutions, which in turn drove the entire adj. EBITA miss of -9% vs. ABGSCe and -7% vs. FactSet cons. The company noted that it has overcapacity in several facilities, which is holding back margins, but it expressed some confidence that utilisation can be improved in coming quarters given that it has seen a net inflow of customers. Print & Packaging, however, surprised on the upside (adj. EBITA SEK 35m vs. ABGSCe/cons. 30m) thanks to the high-margin online print performing well, as well as price hikes.