Prevas: Slower end to '23 but positive market signals - ABG

1% organic sales growth y-o-y
Profitability still at a good level
Lower utilisation rather than drop in demand


Q4: Sales -4% and EBITA -13% vs. ABGSCe

Prevas ended 2023 with lower organic growth than we have seen in previous quarters. Sales were SEK 399m (+3% y-o-y, of which roughly 1% organic) and EBITA was SEK 44m (52m) for an EBITA margin of 11.1% (13.4%). The lower profitability was explained by one less working day and a lower utilisation rate. Both profitability and organic growth were a bit behind our expectations, but it seems as though this is mainly due to a lower utilisation rate rather than lower demand, as Prevas still has positive net recruitment adj. for M&A, albeit to a small degree this quarter. It is also worth noting that market data from Konjunkturinstitutet saw a rather steep decline from Q3 to Q4, meaning there was probably a bit more hesitation among Prevas customers in the quarter. Cash flow was positive in Q4, meaning the company still has a net cash position.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/prevas/Equity-research/2024/2/prevas---slower-end-to-23-but-positive-market-signals/