Formpipe: Strong performance in Public DK - ABG

• Better-than-expected Q2 report, mainly driven by Public DK
• We raise our EBIT estimates on lower costs
• We continue to see improved margins ahead

Public DK in the limelight
Formpipe delivered strong Q2 results, with sales growing 15% y-o-y to SEK 137m ( ABGSCe SEK 132m) while EBIT improved to SEK 13m (SEK 0m in Q2'22 and ABGSCe 9m) on operational leverage and opex growing +4% y-o-y. The latter represents another quarter with decelerating metrics after a period of elevated levels, and shows that Formpipe is improving the efficiency of its personnel. In terms of regions, Public SE had a solid quarter with sales growing +7% y-o-y, while ACV was flat q-o-q despite a SEK 3m headwind from Formpipe deciding to end a complex, unprofitable customer project. Meanwhile, with ACV of SEK 7m and sales +17% y-o-y, Public DK delivered another strong quarter driven by both new customers and the upselling of products (mainly due to a new framework agreement with Landbrugsstyrelsen). We have now seen several quarters with improved financials in Public DK, which is encouraging. Finally, Private performed slightly weaker, with recent market sluggishness causing increased churn and longer sales cycles. In addition, similar to Q1, Private sales saw headwinds from lower delivery sales (-44% y-o-y), which we expect to continue.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/6449ef2a864647bc99b7a157e13282e1/pdf/strong-performance-in-public-dk.pdf