Elanders: Electronics struggling, F&LS holding up - ABG

Q2 report due on Wednesday, 12 July
Demand likely slowing, mainly in Electronics
10x EV/EBITA (adj.) after share -24% L90D


Q2e: a notable slowdown in Electronics

We expect Elanders to report Q2 net sales of SEK 3,778m, up 7.2% y-o-y (-1.0% org, +7.8% FX, +0.4% M&A), with a notable organic decline in the Electronics customer segment (down ~18%), where both laptop and printer sales are down heavily y-o-y. Meanwhile, we continue to expect above-group-level organic growth in Fashion & Lifestyle (F&LS) thanks to Bergen, but still notably lower compared to last year's growth. In Supply Chain Solutions, we estimate an EBITA margin of 6.8% (7.3%), as we believe it will be difficult to maintain last year's margin given the significantly lower volumes in Electronics. Meanwhile, for Print & Packaging Solutions (PPS) we have the margin expanding to 4.3% (3.3%), noting that comps are exceptionally weak, as PPS was hurt by widespread paper mill strikes in the Nordics in Q2'22. All in all, this results in an EBITA of SEK 231m (+3% y-o-y), for a margin of 6.1% (6.4%).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/elanders/Equity-research/2023/7/elanders---electronics-struggling-fls-holding-up/