Elanders Q4: Better sales, but weaker margin than expected - ABG

Adj. EBITA SEK 289m (-3% vs. ABGSCe 299m)
Consensus EBITA should not change much
10x 2024e EBITA on pre-Q4 estimates


Q4 outcome

Sales came in at SEK 3,574xm (+3% vs. ABGSCe SEK 3,461m, +2% vs. FactSet cons. 3,492m), and adj. EBITA was SEK 289m (-3% vs. ABGSCe 299m, +3% vs. cons 281m), for a margin of 8.1% (ABGSCe 8.6%, cons 8.0%), with acquisition-related NRI of -25m (ABGSCe -20m). Net profit was SEK 95m (-10% vs. ABGSCe 106m, -15% vs. cons 112m). On top line, all customer segments, except for Automotive, came in above our expectations. The EBITA miss vs. ABGSCe was driven by a lower margin in Supply Chain Solutions. Print & Packaging Solutions had another strong quarter, with an EBITA of SEK 86m, albeit below expectations (-7% vs. ABGSCe and -9% vs. cons). OPCF was strong at SEK 593m, driven by Elanders' active focus on cash flow improvement and a meaningful quarterly NWC reduction. However, this should have been largely expected. Proposed DPS at SEK 4.15/share was flat vs. last year and in line with our estimate (ABGSCe 4.15, cons 4.44).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/elanders/Equity-research/2024/1/elanders---q4-better-sales-but-weaker-margin-than-expected/