Swedencare: Solid report despite supply chain issues - ABG

Q2 details
Q2'21 report: Net sales SEK 160m (-2% vs ABGSC 163m and -2% vs cons 163m), EBITDA SEK 47m (5% vs ABGSC 45m and 6% vs cons 45m), Adj. EBIT SEK 45m (7% vs ABGSC 42m), EBIT SEK 44m (7% vs ABGSC 41m and 5% vs cons 42m), Net profit SEK 33m (5% vs ABGSC 31m and 2% vs cons 32m).

Solid report despite continued supply chain issues
Sales came in at SEK SEK 160m, 2% below our expectations and -2% vs. consensus. The demand continues to be strong, and the company grew by 45% organically, in line with our expectations. All-in-all, sales grew by 400% y-o-y with M&A continuing to drive most of the sales growth. On profitability, adj EBIT came in at SEK 45m for a margin of 28%. This was 7% ahead of our expectations at SEK 42m. The company states that they continue to see supply chain issues, holding back further growth in certain group companies with growth rates varying between single digits to close to 100% within the group.

Cons. revisions should be slightly positive
Mechanically, the report would lower cons FY’21 PF estimates by c. 1% on adj. EBIT. One should keep in mind that we expect Q2 to be a rather small addition to the FY’21 financials given the Vetio addition from H2 and onwards. All-in-all, the report should lead to positive low-single-digit estimate revisions from consensus.

https://www.introduce.se/foretag/Swedencare/Equity-research/2021/7/swedencare---solid-report-despite-supply-chain-issues/