Nilörngruppen: At the mercy of client inventory levels - ABG

Order intake likely to start stabilising
Healthy balance sheet helpful to gain market share
'23e-'25e EBIT down 13-4%


What to look for in Q3'23e

We think that Q3'23e will be characterised by much the same themes as Q2'23: (i) continued destocking, (ii) working capital management and (iii) low order intake. Our updated Q3 sales and EBIT estimates of SEK 197m and SEK 12m imply revisions of -5% and -14%, respectively. These new estimates also imply y-o-y growth of -15% (-20% organic growth, +4% FX, +1% M&A) and an EBIT margin of 6%. Order intake momentum is likely to be negative y-o-y, but stable q-o-q given the significant drop in Q2'23.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nilorngruppen/Equity-research/2023/10/nilorngruppen---at-the-mercy-of-client-inventory-levels/