Ework Group: Better EBIT on lower opex - ABG

Sales +1% vs. ABGSCe, EBIT +50% on lower opex
Outlook: expects the weak market to linger in the near-term
Expect cons to raise '23e EBIT c. 5%


Q3 results

Q3 sales of SEK 3,640m (+1% vs. ABGSCe 3,619m), +4% y-o-y. Gross profit was SEK 137m (-1% vs. ABGSCe SEK 138m), flat y-o-y, while EBIT was SEK 45m (+50% vs. ABGSCe 30m), -3% y-o-y. The gross margin of 3.77% improved slightly from 3.75% in Q2, likely driven by a favourable sales mix. The beat in terms of EBIT was driven by lower opex and the fact that Ework reported capitalised development costs of SEK 6m in the quarter (ABGSCe SEK 0m). Adjusting for the latter, EBITDA was 24% above our forecast. Ework notes that hourly prices on new contracts grew +11.8% y-o-y, driven by a positive mix and a higher share of senior consultants.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ework/Equity-research/2023/10/ework-group---better-ebit-on-lower-opex/