Svedbergs: UK acquisition continues proving its worth - ABG

• Net sales SEK 456m, -2% vs ABGSCe SEK 464m
• EBITA SEK 58m, -4% vs ABGSCe SEK 60m
• Share is +31% YTD, trading at 6x '23e EV/EBITA

Q2 in brief
Svedbergs keeps fighting headwinds in Q2'23. Net sales of SEK 456m corresponds to y-o-y growth of -3% (-8% org.), and is -2% vs ABGSCe. By segment, Roper Rhodes continues to be stronger than the group average with 12% y-o-y growth (5% org.), Svedbergs is losing some momentum at -19% y-o-y growth, and the two smaller Macro Design and Cassoe are soft at -23% and -13% y-o-y respectively. Gross margins are up 120 bp sequentially at 42.6%, supported by successful price increases, lower freight rates and FX. EBITA margins of 12.6% correspond to a SEK 58m EBITA, -11% y-o-y and -4% vs ABGSCe, missing our forecasts on account of higher selling expenses. FCF is a strong SEK 100m.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/35f116613f2a403a8c440d55b4eb63f7/pdf/uk-acquisition-continues-proving-its-worth.pdf