Nordic Waterproofing: Should be no drama over seasonally small Q1 - ABG

Q1 is a small quarter; we estimate SEK -9m adj. EBIT
Small, mostly FX-driven revisions
Kingspan got only +4.8pp of shares in the bid (ended 27 Mar)


Q1e: a small quarter with estimated adj. EBIT of SEK -9m

We expect sales of SEK 867m, down 5% y-o-y, all of which is organic. According to the company, most of the volume decline should now be behind us as the market has started to stabilise at low levels, while price pressure on certain EPDM products is not expected to escalate further. We estimate an adj. EBIT of SEK -9m (+3m), which excludes an NRI of ~SEK 10m tied to advisory fees related to the Kingspan bid (flagged for in Q4). Q1 is a very small quarter for Nordic Waterproofing, mainly due to weather effects creating poor conditions for roofing installations, and we believe the extra-harsh winter conditions this year are likely to provide a negative y-o-y effect.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nordic-waterproofing/Equity-research/2024/4/nordic-waterproofing---should-be-no-drama-over-seasonally-small-q1/