Bildkälla: Stockfoto

Christian Berner Tech Trade: Further signs of progress - ABG

Q1: 31% organic sales growth and EBITA margin doubling
We raise estimates on further signs of profitability progress
Valuation still below peers despite margin prospects


Q1: Delivering on Q4 promise

Christian Berner delivered an impressive Q1, with sales of SEK 238m, growing 31% organically y-o-y, and adj. EBITA of SEK 14.3m (6.2m), for a margin of 6.0% (3.4%). The exceptionally strong sales growth was a result of the company delivering on the high order intake seen during '22, as R12m book-to-bill dropped from 1.09 to 1.04 q-o-q. Order intake was up 11% (28%) y-o-y, which is still good, especially considering the tough comps. See charts on page 3 showing how sales and order intake have tended to converge historically after periods of divergence. Both the Technology & Distribution and Energy & Environment segments performed well, delivering organic growth of 26% and 39%, respectively, as well as EBITA margins of 8.8% and 10.7%.
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