Svedbergs: UK support in a challenging market - ABG

Sales SEK 438m, -2% vs. ABGSCe
Adj. EBITA SEK 54m, 3% vs ABGSCe
On unrevised ests, share trading at 6x '23e-'24e EBITA


Q4'22 in brief

Following continued strong development into the consumer sentiment and renovation headwinds, Svedbergs Group reports net sales of SEK 438m in Q4'22, for y-o-y growth of 56% (-9% org). This is 2% below ABGSCe SEK 447m. Like in previous quarters, the strong brands Svedbergs and Roper Rhodes hold up relative to the market, Svedbergs grew by -3% and Roper Rhodes developed favourably, while Macro Design and Cassoe reports -22% and -21% sales growth respectively. The group reported a gross margin of SEK 181m for a 41.4% margin, sequentially -40bps but y-o-y +50bps. This is largely due to successful price increases that have been implemented across brands, which will have full effect during '23e. Continued cost control in opex results in a SEK 54m EBITA for a 12.4% margin, 3% above ABGSCe SEK 53m. The group's inventory is flat sequentially, as an added focus on inventory efficiency is counteracted by energy prices and FX rates inflating purchasing prices.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2023/2/svedbergs---uk-support-in-a-challenging-market/