Relais: Market remains volatile - Nordea

Relais reported Q2 headline figures in line with its pre-release that was given in conjunction with the profit warning on 8 August. Q2 adjusted EBITA was EUR 3.7m with net sales of EUR 58.6m. Reported EBIT was EUR 0.0m in Q2. The wholesale market has recovered although it seems that the situation remains volatile ahead of the important lighting season. In addition, the company has been affected by the lack of mechanics, which was the main bottleneck in workshops. The company has started operational efficiency program in order to improve working capital efficiency and to accelerate synergy benefit recognition. On a positive note, pricing actions have been successful and the company was able to improve its gross margin from Q1. We note that the current balance sheet situation most likely allows only bolt-on acquisitions, while larger acquisitions could require additional equity component.

Länk till analysen i sin helhet: https://research.nordea.com/api/reportfileapi?id=790267