Elanders: Improvement in Q2e, bigger hopes for H2 - ABG

Reasons to be optimistic after slow start to the year
We expect Elanders to report Q2 net sales of SEK 3,681m, +7% y-o-y (-4% organic, +1% FX, +10% M&A). Demand has improved following the challenges of Q1, with a notable recovery in Electronics, while the Fashion segment, particularly in the US, remains sluggish. The UK market remains subdued, but Bishopsgate should outperform Kammac due to its niche exposure. Meanwhile, we are optimistic about Elanders’ efforts to address overcapacity, which could have a slight positive effect on Q2, although the contract closures are still likely to weigh y-o-y, despite easier comps. For Supply Chain Solutions (SCS), we estimate an adj. EBITA margin of 6.0%, slightly down from Q2’23 (6.2%), although we forecast a clear improvement in H2 due to acquisitions and increased efficiency. For Print & Packaging Solutions, we forecast continued strong demand with 7% organic growth and an adj. EBITA margin of 7.3% (6.2%). Overall, we expect adj. EBITA of SEK 222m, for a margin of 6.0% (6.1%).