Ework Group: Weaker market takes its toll - ABG

Sales -2% vs. ABGSCe, -7% y-o-y
Ework expects sales to decline H1'24 but to recover in H2'24
We expect cons to cut '24e EBIT by c. 2%


Q1 results

Q1 sales of SEK 4,225m (-2% vs. ABGSCe 4,306m), -7% y-o-y. Gross profit was SEK 160m (-5% vs. ABGSCe SEK 169m), -8% y-o-y, while EBIT was SEK 45m (-10% vs. ABGSCe 49m), -17% y-o-y. The gross margin of 3.78% contracted from 3.91% in Q4, driven by an unfavourable sales mix and profitability-enhancing initiatives. The miss in terms of EBIT was driven by lower sales, which was not fully offset by lower-than-expected opex.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ework/Equity-research/2024/5/ework-group---weaker-market-takes-its-toll/