Humble Group Q1: Solid gross margin, miss on EBITA - ABG

Organic growth of 11% vs. cons. 10%
Adj. EBITA SEK 128m, 13% below consensus
Gross margin recovery increasingly evident


Q1'24 outcome

Q1 sales came in at SEK 1,838m (0% vs ABGSCe 1,845m, 0% vs cons 1,837m), organic growth 11% (vs 10% ABGSCe; vs 10% cons) gross margin at 30.8% (vs ABGSCe 29.8%, vs cons 30.2%) and adj. EBITA at 128m (-10% vs ABGSCe 143m, -13% vs cons 147m). Once again, the gross margin was stronger than we had anticipated, suggesting that the recovery is well underway despite macroeconomic headwinds. The EBITA miss is mostly driven by tougher comps for a Future Snacking brand and partly by what appears to be a higher opex level, driven by capacity increases. Operating cash flow (with interest expenses subtracted) was SEK 29m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/humble-group/Equity-research/2024/5/humble-group---q1-solid-gross-margin-miss-on-ebita/