Q2 expectations
We forecast sales growth of 36% (-14% organic, 49% M&A, 1% FX) in Q2’21e, mainly driven by the acquisition of 6X International and continued strong market development in Denmark and Germany. As in Q1’21, we expect the commercial property market to be affected by the pandemic. Furthermore, market participants within FTTH in Sweden and Norway should await the decided government grants for 2021-2022 before significant projects starts begin, which forecast will not happen until year-end 2021. Combined, it should weigh on organic growth in Q2’21e. We estimate EBIT of SEK 19m, up 8% y-o-y, for a margin of c. 11%, down 320bp, driven by price increases within raw materials (copper and plastic). We expect that the profitability impact is short-term while cost increases should be in progress of translating to price increases for its customers, driving organic growth.
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