StrongPoint: Not very strong - ABG

Q1 EBITDA NOK -6m vs ABGSCe of NOK -1m, Q2 likely weaker
New targets more achievable - sales +22% in '25e vs '23
Estimates materially down, look towards '25


Q1 weak, Q2 likely weaker

StrongPoint's Q1 was another soft quarter, with revenues of NOK 359m, -6% y-o-y (+7% vs ABGSCe). The market remains challenging as customers are still holding back investments. COGS came in higher than our estimate, giving a GM of 36.2% (ABGSCe 40.0%). Higher personnel expenses still weighs, especially in Sweden/the Baltics where most of its employees are located. This gave a clean EBITDA of NOK -6m (ABGSCe NOK -1m). The company will book NOK 10m in one-offs in Q2 as part of a new cost saving initiative (will save NOK 20m in H2). Q2 will likely be weaker than Q1, with improvements expected from H2.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2024/5/strongpoint---not-very-strong/