Nolato: EBITA 21% above consensus - ABG

EBITA SEK 238m (+22% vs. ABGSCe, +21% vs. FactSet cons)
We expect cons. EBITA to come up by 6-7%
18x '24e EV/EBITA on pre-Q1 estimates (and y-day close)


Q1 outcome

Sales was SEK 2,442m (+5% vs. ABGSCe 2,322m, +4% vs. FactSet cons 2,356m), down 1% y-o-y, of which -2% organic (ABGSCe -6%). EBITA was SEK 238m (+22% vs ABGSCe 195m, +21% vs. cons 196m), for an EBITA margin of 9.7% (ABGSCe 8.4%, cons 8.3%), up 1.9pp y-o-y, and this includes no NRIs (ABGSCe/cons 0). Both segments beat our expectations on EBITA materially (Medical 10% above, Engineering 44% above). The positive y-o-y margin development was driven by favourable product mix (partly from growing IVD sales) and realised cost cuts in the Chinese business. Cash flow was negative due to NWC build-up and high capex, but overall we still se this as a strong report.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nolato/Equity-research/2024/5/nolato---ebita-21-above-consensus/