Nolato: Adj. EBITA -3% vs. cons, soft in Medical - ABG

Adj. EBITA SEK 193m (-4% vs. ABGSCe, -3% vs. cons)
We expect cons. adj. EBITA to come down by ~2%
13.5x '24e EV/EBITA on pre-Q3 estimates (and y-day close)


Q3 outcome

Sales were SEK 2,340m (-1% vs. ABGSCe 2,369m, -2% vs. FactSet cons 2,388m), down 11% y-o-y, while organic growth was -15% (ABGSCe -13%). Adj. EBITA SEK was 193m (-4% vs ABGSCe 202m, -3% vs. cons 198m), for an adj. EBITA margin of 8.2% (ABGSCe 8.5%, cons 8.3%), which included NRIs of SEK -60m (ABGSCe/cons -60m) tied to VHP downsizing costs, and VHP products are confirmed to now be <5% of group sales. The most important segment, Medical, was 11% below our estimate on EBITA, while Industrial was 20% above. Cash conversion was strong, with FCF/EBIT of 94%.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nolato/Equity-research/2023/10/nolato---adj.-ebita--3-vs.-cons-soft-in-medical/