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B3 Consulting Group: '23e: more competition and normal margins - ABG

We lower '23e-'25e EBITA by 9-7%
Utilisation down to normal levels
B3 Poland margin accretive


Takeaways from the report and the webcast

Q1 was characterised a normalisation of demand, more competition and therefore a lower utilisation rate. Despite such headwinds, B3 delivered y-o-y sales growth of 11.7% and an EBITA margin of 12.6%. The margin contracted by 90bps y-o-y, driven mostly by weaker margins in the Digital Experience & Solutions segment (in which the company earned a margin of 15.3%, representing a decline of 260 bps y-o-y), while the EBITA margins of the Digital Management and Cloud & Technology Platforms segments declined by 90 bps and 30 bps, respectively. This suggests that the Digital Experience & Solutions segment is more sensitive to cyclical elements than the other two faster-growing segments.
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