Green Landscaping: 16% EBITA beat, strong Nordic performance - ABG

Sales +11%, adj. EBITA +16% vs. cons, +8% org. sales
Cons to raise '24e adj. EBITA by 2-4 (ex FX)
Share likely up on better performance across the board


Q1 details

Better sales, margins and cash flow, as winter conditions benefited group operations. Sales came in at SEK 1,383m (+11% vs. ABGSCe, +11% vs. FactSet cons), up 11% y-o-y of which +8% organically (ABGSCe/cons -4%, -6% Q4'23), mainly due to strong performance in Sweden and Norway, supported by good activity in its snow and ice removal businesses. Adj. EBITA grew 7% y-o-y to SEK 92m (+17% vs. ABGSCe, +16% vs. cons 79m), of which +9% organically (ABGSCe -22%), for a margin of 6.7% (ABGSCe/cons 6.3%, 6.9% Q1'23), due to higher margins in both Sweden and Norway. FCF was strong at ~140% of adj. EBITA (~40% in Q4) while pf gearing came down q-o-q to 2.4x (2.5x), and was down q-o-q to 2.6x (2.9x) on a R12m basis. On outlook, the CEO states that underlying demand is favourable.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/green-landscaping-group/Equity-research/2024/4/green-landscaping-group---16-ebita-beat-strong-nordic-performance/