Pricer: Light comps and partial order resurgence - ABG

Q3 due Thursday, 24 October, 07:00 CET
We expect improved orders on pent-up demand and light comps
We lower '24e-'26e sales slightly, but expect continued strong EBIT


Some growth improvements, but less favourable mix for GM

For Q3'24, we expect sales of SEK 633m (up 2% y-o-y, 5% organic), and orders of SEK 541m (up 3.4% y-o-y). Both Q2'24 and Q3'23 were negatively impacted by lower or delayed order intake from large customers, so the comparisons are light. We expect order intake to pick up in H2, partly due to pent-up demand from Q2, as well as the announced continued installation of ESLs by the Finnish S Group in 100+ stores, which will be included in Q4 order intake. We estimate a gross margin of 20%, up 1.9pp y-o-y, and down 2.9pp q-o-q, as some of the delayed orders tend to have a less favourable mix effect for the gross margin. In terms of EBIT, we forecast SEK 36m (vs. SEK 12m in Q3’23), based on recent cost savings.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2024/10/pricer---light-comps-and-partial-order-resurgence/