Elanders: High financial costs leave a sour taste - ABG

Q1 in line with prel. figures, no surprise
Marginally lower adj. EBITA, but higher net financials
Divesting Atlanta Print business might be an option


Q1 adj. EBITA -6% vs. ABGSCe, in line with prel. figures

Elanders reported Q1 adj. EBITA 6% below our estimates, which was in line with the announced preliminary figures. The miss was entirely from the Print & Packaging (PPS) segment, while Supply Chain Solutions (SCS) was in line with expectations. Net financial costs also increased more than we and FactSet consensus had expected (disclosed in prel. figures). Forward-looking statements from the company were mixed: on the positive side, it says input costs have stabilised, which we argue should support margin expansion ahead, but it expects demand for the electronics customer segment to remain weak in Q2, with some recovery expected for H2.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/elanders/Equity-research/2023/4/elanders---high-financial-costs-leave-a-sour-taste/