Svedbergs: Continued strong top-line momentum - ABG

Sales +6% vs ABGSCe, 6% organic growth EBITA -2% vs ABGSCe We expect cons. estimates to be largely unchanged Q2’22 at first glance
Svedbergs reports a Q2’22 sales of SEK 471m (+6% vs ABGSC 444m), gross profit SEK 194m (+8% vs ABGSC 180m), EBITA SEK 65m (-2% vs ABGSC 66m), PTP SEK 46m (-22% vs ABGSC 59m), EPS SEK 1.05 (-20% vs ABGSC 2.20). All in all, Svedbergs is continuing to perform well, with stable performance across the board. We are especially positive about mgmt. stating that they to a great extent have been able to meet the demand and ensure delivery of their products.

Q2’22 thoughts and outlook Svedbergs managed to grew group sales by 115% y-o-y to SEK 471m (6% org.) in Q2. Roper Rhodes continues to perform well and grew above our expectations, 13.8% y-o-y. Altogether, all brands (Svedbergs, Macro Design, Cassoe, Roper Rhodes) performed relatively well. The gross margin contracted by 1.6pp. y-o-y to 41.2% (+0.7pp. vs ABGSCe of 40.5%), principally on the back higher input and shipping costs. Moreover, the EBITA margin came in at 13.7% (-1.1pp vs ABGSC est. of 14.8%), down 1.4pp y-o-y. Regarding the outlook, mgmt. states that they remain cautious on the outlook given uncertain macroeconomic variables, which could affect the demand ahead, yet focusing on delivering continued product innovation.

We expect cons. to leave estimate relatively unchanged The Svedbergs share is down 52% YTD and is trading at 8x EV/EBITA in ‘22e on our unrevised estimates. The mechanic estimate effect on isolated Q2 numbers would be +2% on net sales and -1% on EBITA 2022 and we could see cons. estimates be left relatively unchanged on the back of today’s numbers. Svedbergs is hosting a conf call today at 11.00 a.m. CEST which can be followed at: https://tv.streamfabriken.com/svedbergs-group-q2-2022. Läs mer på ABG Sundal Collier

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2022/7/svedbergs---continued-strong-top-line-momentum/