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Alcadon Group Q3: much weaker organic sales, adjusted EBIT in line - SEB

Q3 sales are 4% ahead of our estimates, clearly bolstered by consolidation of its newly acquired NWC that outperforms our forecasts. This also implies that organic growth of 6% y/y is well-below our 28% estimate. Gross margins came in at 23.5% (down 430bps y/y), as expected by us. Higher-than-expected costs reflect investments and M&A-related costs of SEK 4.5m: adjusting for NRIs, EBIT of SEK 15.5m are in line with our estimates (27% below consensus). Mid-point of SEK 135.

Q3 sales are 4% ahead of our estimates, clearly bolstered by consolidation of its newly acquired NWC that outperforms our forecasts. This also implies that organic growth of 6% y/y is well-below our 28% estimate. Gross margins came in at 23.5% (down 430bps y/y), as expected by us. Higher-than-expected costs reflect investments and M&A-related costs of SEK 4.5m: adjusting for NRIs, EBIT of SEK 15.5m are in line with our estimates (27% below consensus). Mid-point of SEK 135.
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