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DistIT Q2: Earnings well ahead of all market estimates - SEB

DistIT Group reported Q2 revenue down 16% y/y (SEBE: -14%) reflecting more muted consumer goods markets, as well as the imposed sales ban on two market leading products distributed by its Efuel division. Gross margins improved 1.5pp y/y to 21.9% (SEBE: 21.5%). Strong cost management underlines much better-than-expected adjusted EBIT of SEK 4m (SEBE: SEK -8m, consensus: SEK -12m). We are contemplating earnings upgrades. Our current mid-point is SEK 15 per share (under review).

DistIT Group reported Q2 revenue down 16% y/y (SEBE: -14%) reflecting more muted consumer goods markets, as well as the imposed sales ban on two market leading products distributed by its Efuel division. Gross margins improved 1.5pp y/y to 21.9% (SEBE: 21.5%). Strong cost management underlines much better-than-expected adjusted EBIT of SEK 4m (SEBE: SEK -8m, consensus: SEK -12m). We are contemplating earnings upgrades. Our current mid-point is SEK 15 per share (under review).
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