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Dist IT: Q4, Bearing the full brunt of de-stocking in the consumer goods sector - SEB

DistIT Group - the B2B consumer goods distributor - is reporting sales down 12% y/y, burdened by the significant de-stocking case in the sector. While gross margins beat our estimates, operating leverage weighs on underlying EBIT that came in at SEK 7m (SEBE: SEK 22m, Cons: SEK 44m, Q4/21: SEK 52m). Separately, DistIT has announced a fully guaranteed rights issue of SEK 98m (1:1 at SEK 7/share). Our estimates and our SEK 60 mid-point value are under review.

DistIT Group - the B2B consumer goods distributor - is reporting sales down 12% y/y, burdened by the significant de-stocking case in the sector. While gross margins beat our estimates, operating leverage weighs on underlying EBIT that came in at SEK 7m (SEBE: SEK 22m, Cons: SEK 44m, Q4/21: SEK 52m). Separately, DistIT has announced a fully guaranteed rights issue of SEK 98m (1:1 at SEK 7/share). Our estimates and our SEK 60 mid-point value are under review.
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