DistIT: Sales ban on Easee products - ABG

Ban could result in reduced growth for EFUEL-15% '23e group EBIT impact......for each quarter that the ban is in effectGovernment agency bans two Easee productsSwedish government agency Elsäkerhetsverket has banned the sale of two models of EV charging boxes produced by Easee. EFUEL, a segment of DistIT, is a distributor of these products and will be affected by this ban. The reasons behind the ban are that the products (i) do not have an electromechanic residual-current device (but rather an electronic one) and that (ii) the DC circuit protection does not fulfil certain requirements. The agency argues that there is therefore a risk that the residual-current device solution does not always activate when needed.The consequencesAccording to the agency, the decision also means that Easee is required (i) to take action to fix the issues with already installed boxes and (ii) recall the boxes, that are subject to the ban, from its distributors.Potential impact on estimatesEFUEL makes up 16% of '23e group sales and 48% of '23e group EBIT according to our estimates. Assuming that the Easee products subject to the ban constitute 50% of EFUEL's sales, we estimate that '23e group sales will be impacted by 2% and '23e group EBIT by 15% for each quarter that the ban is in effect.Läs mer på ABG Sundal Collier