Prevas: Signs of a better market ahead - ABG

1% organic sales growth y-o-y
Profitability impressed in Q1, ability to offset wage increases
We make positive revisions, '24e adj. EBITA up 3%


Q1: Sales +1% and adj. EBITA +10% vs. ABGSCe

Prevas saw Q1 organic growth on the same level as in Q4. As it had negative calendar effects, however, it was a slight improvement q-o-q. Sales were SEK 407m (+3% y-o-y, of which roughly 1% was organic) and adj. EBITA was SEK 54m (60m) for an adj. EBITA margin of 13.2% (15.1%). The lower profitability was partly explained by one less working day and probably also lower utilisation as Q1'23 had perfect execution to reach above a 15% EBITA margin. Both profitability and organic growth were better than we expected, especially profitability, which bodes well going forward. Management also indicated that it sees signs of a better market ahead as customers are more optimistic, but it is yet to make any final investment decisions.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/prevas/Equity-research/2024/5/prevas---signs-of-a-better-market-ahead/