Bildkälla: Stockfoto

DistIT: Taking action amid tough conditions - ABG

We cut '24e and '25e EBITDA by 17% and 8%
Refocusing of Aurdel to improve margin stability
'25e EV/EBIT of ~11x


Focusing on efficiency

Q1 was a tough quarter for electronics retailers. DistIT reported sales that were somewhat weaker than we had expected, but EBIT was better thanks to a favourable gross margin mix. The company also continued to take the right steps in terms of reducing its working capital. Given that B2B sales in Aurdel's market appear to be weakening, we would not expect a quick return to growth in the coming quarter. However, the comps in Q4'24e are easy, and if conditions improve slightly for B2C, then a return to organic growth in the latter half of the year is likely.
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