Probi: Slow start, but turnaround continues - ABG

Drop in sales due to tough comps
Gross margin negatively impacted by mix effects
EBITDA revised down 8-9% for '24e-'26e


Earnings miss due to lower sales in Q1

Probi reported a slow start to the year in Q1, with negative organic sales growth and lower margins. Sales of SEK 151.7m (-13% vs ABGSCe SEK 174.1m) was mainly related to lower-than-expected sales in the US, which faced tough comps in Q1 due to an unusually high sales level in Q1'23. In addition, the gross margin was negatively impacted by product mix effects in Q1. All in all, EBITDA in Q1 of SEK 22.0m was 38% below our SEK 35.6m forecast. The gross margin should improve already in Q2'24e, according to management, although some a degree of q-o-q variance is likely to be seen for the coming quarters.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/probi/Equity-research/2024/4/probi---slow-start-but-turnaround-continues/