Embellence Group: Accelerating on easy comp - ABG

Q4 report due 21 Feb
Q4'23e net sales SEK 195m, EBITA SEK 25m
We raise our fair value range to SEK 22-30 (SEK 21-29)


Q4 could be supported by easy comp

We believe the strong sales development from Q3 (+8% y-o-y) could continue in Q4, supported by a significantly easier comp sequentially. By region, we expect the Borosan launch to contribute to the Nordics and increased traction for Cole & Son and Boråstapeter to add growth to RoW, specifically. All in all, we forecast Group Q4'23e net sales of SEK 195m (+11% y-o-y, of which 9% org.). The lower gross margins for the Borosan offering and mix effects from the strong growth in Nordics lead us to forecast a gross margin of 59%, -80 bp y-o-y. We forecast a similar opex ratio saving y-o-y as in Q3, for EBITA of SEK 25m (12.7% margin), 12% higher y-o-y.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/embellence-group/Equity-research/2024/1/embellence-group---accelerating-on-easy-comp/