Nordic Waterproofing: Slow start to '23, but Q1 is a small quarter - ABG

Q1 numbers softer, but it's a small quarter
We push our market recovery assumptions back
11x '23e EV/EBIT (adj.), overhanging bid speculations


Harsh weather and lower volumes hurt Q1

Nordic Waterproofing (NWG) reported an adj. EBIT of SEK 2.7m (ABGSCe SEK 5.9m), with NRIs of SEK -14.2m from capital losses tied to the termination of two entities. The poor earnings were driven by harsh weather conditions and continued struggles in the prefabricated elements business, which has ~90% newbuild exposure compared to NWG's group-level split of 50/50 between newbuilds and renovations. Of the -10% organic growth (ABGSCe was -4%), there was a negative volume component of 20%, but we note comps will gradually get easier during the year, and as such management reiterated its prior prediction of roughly -10% volume growth y-o-y in 2023.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nordic-waterproofing/Equity-research/2023/4/nordic-waterproofing---slow-start-to-23-but-q1-is-a-small-quarter/