Dedicare: Demand is holding up well in Q2 - ABG

43% sales growth y-o-y, 37% organic We raise ’23e sales & EBIT estimates by 6% and 10% New fair value range of SEK 89-116 (82-113) Q2: Adj. EBIT of SEK 38.4m (25.6m), 20% above ABGSCe
Dedicare reported Q2 sales of SEK 428m (+43% y-o-y of which 37% organic), 5% above ABGSCe. The deviation stems from the Norwegian operations, which reported sales growth of 54% y-o-y (all organic), 8% above ABGSCe. According to the company, the growth rate is higher than the overall market, meaning that Dedicare has strengthened its already market-leading position in the region. Sweden and Denmark reported sales growth of 36% and 9% y-o-y, respectively. Despite a lower growth rate in Denmark, the company sees increased demand and deployed growth initiatives in H1, increasing its internal employees by 30% to meet future expected demand. This resulted in a lower Q2 EBIT margin for Denmark of 2.2% (4.3%); Sweden and Norway reported 6.3% (2.7%) and 12.5% (13.5%). Group adj. EBIT was SEK 38.4m (25.6m), corresponding to a margin of 9.0% (8.6%) and 20% above ABGSCe.