Elanders: Q3 EBITA miss amid weak demand - ABG

Adj. EBITA SEK 211m (-13% vs. ABGSCe 241m)
Consensus EBITA likely to come down by 5-7%
10x 2023e EBITA on pre-Q3 estimates


Q3 outcome

Sales came in at SEK 3,253m (-13% vs. ABGSCe SEK 3,744m, -12% vs. FactSet cons. 3,677m), and adj. EBITA was SEK 211m (-13% vs. ABGSCe 241m, -9% vs. cons 232m), for a margin of 6.5% (ABGSCe 6.4%, cons 6.3%), which did not include any NRIs this time (ABGSCe/cons 0m). Net profit was SEK 65m (-31% vs. ABGSC 94m, -29% vs. cons 91m). The earnings miss was driven by demand weakness across customer segments in Supply Chain Solutions, and the continued overcapacity in both Europe and the US entailed additional costs. Meanwhile, the discontinuing of low-profitability businesses (with high sales) boosted margins. Print & Packaging Solutions had another strong quarter amid good demand and higher pricing, with an EBITA of SEK 41m (+6% vs. ABGSCe and +5% vs. cons). OPCF was strong again at SEK 426m, driven by Elanders' active focus on cash flow improvement and NWC reduction.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/elanders/Equity-research/2023/10/elanders---q3-ebita-miss-amid-weak-demand/