Embellence Group: Show of strength for the legacy brand - ABG

Back to growth across geographies
Strong momentum for Boråstapeter brand
We raise the fair value range to SEK 22-30 (21-29)


Q3 report in brief: strong across all markets

Q3 was a strong quarter in general with growth in all three geographies. Nordics increased by 1%, Europe by 10% and RoW by 17%. Net sales of SEK 183m (+8% y-o-y of which 4% org.) was 10% above ABGSCe and 13% above Factset cons. The gross margin was 57.6%, down -0.5pp from Q2 on a lower share of premium sales as Boråstapeter had strong momentum. Adj. EBITA amounted to SEK 26.5m (+19.0 % vs ABGSCe and +39% above cons), corresponding to +13% y-o-y growth and a margin of 14.4% on the operational leverage. This is a direct consequence of strong sales combined with price increases and completed efficiency improvements. FCF of SEK 7m results in 2.1x ND/EBITDA, -0.1x vs Q2.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/embellence-group/Equity-research/2023/10/embellence-group---show-of-strength-for-the-legacy-brand/