Svedbergs Group - Q4 at first glance - ABG

Net sales SEK 460m, -1% vs ABGSCe
EBITA SEK 59m, +1% vs ABGSCe
2024 could remain challenging


Q4 headlines

Net sales of SEK 460m corresponds to y-o-y growth of 5% (-5% org.), and is -1% vs ABGSCe SEK 464m. By segment, Roper Rhodes continues to be stronger than the group average with 9% y-o-y growth (3% org.), Svedbergs is losing some momentum at -16% y-o-y growth, and the two smaller Macro Design and Cassoe are soft at -15% and -5% y-o-y growth respectively, although the latter two brands look like they could have found and passed a trough. Furthermore, Cassoe continues to impress on profitability with an EBITA margin of 20%. The Swedish market remains harder than abroad, however. Thebalux (consolidated 23 Nov 2023) contributed SEK ~31m (ABGSCe: 23m) in sales and SEK 1m in EBITA (ABGSCe: 5m), as December is a slow month for the brand. The gross margin of 46.2% is 480 bp better y-o-y, which could partly be explained by Thebalux but also by Roper Rhodes price increases. All in all, EBITA of SEK 59m (Q4'22 SEK 54m) was 1% better than ABGSCe SEK 59m. The higher ND/EBITDA of >3x has been reduced following the report through a share issue, our current estimates suggest a Q1'24e ND/EBITDA ratio of 1.6x. The proposed DPS of SEK 1 vs 1.50 last year, corresponds to 30% of '23 net profit.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2024/2/svedbergs-group---q4-at-first-glance/