Nordic Waterproofing: Volume decline hurts Q3 numbers - ABG

EBIT SEK 128m (-8% vs. ABGSCe 140m)


Q3 numbers imply negative EBIT revisions of 3%


Trading at 9x ’22e EV/EBIT on pre-Q3 estimates


Q3 outcome

Sales were SEK 1,132m (-2% vs. ABGSCe 1,155m), and organic growth was 4% (ABGSCe 7%), of which +13% from price (ABGSCe +12%) and -9% from volumes (ABGSCe -5%), indicating that we are starting to see an increasing impact from lower newbuild activity. Input costs remain high, and EBIT amounted to SEK 128m (-8% vs. ABGSCe 140m) with no NRIs (ABGSCe 0m), for an EBIT margin of 11.3% (ABGSCe 12.1%). Operating cash flow was strong at SEK 244m (~150% conversion from EBITDA), due to a significant NWC offload.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nordic-waterproofing/Equity-research/2022/10/nordic-waterproofing---volume-decline-hurts-q3-numbers/