Pion Group: Launches new growth stratgy ahead of CMD - ABG

Q3 results in line with ABGSCe


Aims for 20% sales CAGR until 2026 inc. M&A…


…and targets an EBITA margin of 5%


Q3: 15% sales growth y-o-y, growth initiatives hurt margins

Pion Group reported Q3 numbers that was roughly in line with ABGSCe. Sales was SEK 511m (+15% y-o-y of which 14% y-o-y). EBITA was SEK 22.7m (25.8m) for an EBITA margin of 4.4% (5.8%). The lower profitability is explained by growth initiatives in QRIOS and Poolia, whereas Uniflex have experienced increased price pressure. The growth initiatives is believed to lead to higher margins in the coming years whereas PION will initiate a strategic overview of the pricing strategy in Uniflex, targeting the lowest margin contracts and try to raise prices there. If successful, it will lead to higher growth and margins for Uniflex and if customers choose to leave it will not have a substantial impact on reported EBITA in absolute terms.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pion-group/Equity-research/2022/10/pion-group---launches-new-growth-stratgy-ahead-of-cmd/