Nilörngruppen: Continued recovery bodes well for H2'24 - ABG
- Sales +9% and EBIT +11% vs. ABGSCe
- Organic growth of +14%, better than ABGSCe +5%
- Likely to see marginally positive consensus estimate revisions
Q2'24 impressions
Nilörn reports Q2'24 sales of SEK 262m (+9% vs. ABGSCe 241m), gross profit SEK 115m (+13% vs. ABGSCe 102m), EBIT SEK 26m (+11% vs. ABGSCe 23m), net profit SEK 19m (+15% vs. ABGSCe 16m). Order bookings came in at SEK 208m, implying an increase of +24% y-o-y. This is in the lower end of our estimated range for the quarter. As the order bookings continue to normalise, visibility increases. The gross margin was once again better than we had anticipated, yet still within a historical range.
Thoughts and outlook
This quarter serves as additional evidence that order bookings have recovered to a somewhat more normalised level. The sports & outdoor client segment continues to display a positive trend in terms of business momentum, and it is likely that recovery could occur in Q3'24. However, the luxury client segment is becoming somewhat weaker. We do not expect significant operating volatility in the luxury segment because those clients tend to display more operating inertia compared to sports & outdoor clients.
Mechanical impact on cons. earnings is marginally positive
The share is up 25% YTD and is trading at ~10x '24e EV/EBIT on our unrevised estimates. Mechanically, the estimated, positive effect on isolated Q2 consensus EBIT is within a low single-digit range for '24e-'26e EBIT.
Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nilorngruppen/Equity-research/2024/7/nilorngruppen---continued-recovery-bodes-well-for-h224/
