Svedbergs Group: Price hikes and lower input costs - ABG

450bp gross margin expansion y-o-y
We raise '24e-'25e EBITA by 1%
We raise our fair value range to SEK 36-52 (35-51)


Key takeaways from Q4

The Nordics continue to be soft for Svedbergs' brands, especially Sweden. Svedbergs and Macro design delivered -20% and -3% lower sales y-o-y respectively (Macro design is 1/3 Norway). Cassoe turned to a strong 18% growth in the quarter, also accompanied by a margin expansion that brings its EBITA margin to 20%, in line with the larger Roper Rhodes that grew by 3% organically. Price increases and lower input costs in Roper Rhodes drove the Group's profitability: the gross margin was 480bp higher y-o-y, which despite a soft Nordics performance led to 8% underlying EBITA growth. Thebalux is part of the group as of November, adding some SEK 30m in sales and SEK 1m in EBITA in Q4.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2024/3/svedbergs-group---price-hikes-and-lower-input-costs/