Svedbergs Group: Footprint becoming wider still - ABG

Q4 report due 29 Feb
Q4'23e net sales of SEK 464m, EBITA of SEK 59m
We estimate the fair value at SEK 35-51 (SEK 34-50)


Trading update reduces uncertainty around Q4 report

In conjunction with the release of the share issue prospectus, Svedbergs communicated its Thebalux-adjusted October-November performance on 14 December. It stated that it grew sales by 2% with flat EBITA growth. As December is the smallest month of the year for the group, we therefore have rather good visibility into the full quarter's performance. We expect one month of Thebalux' consolidation to add ~SEK 24m to Q4 sales, with a SEK 5m addition to EBITA. Consequently, we forecast SEK 464m in net sales (+6% y-o-y, of which 5pp from M&A), with SEK 59m EBITA for a 12.7% EBITA margin (+30bp y-o-y).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2024/1/svedbergs-group---footprint-becoming-wider-still/