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Humble Group: Macro beginning to look more appetising - ABG

We cut '23e-'25e EBITA by 12-8%
Some macro factors starting to ease
'23e EV/EBITA at 7.4x


What to look for in Q1'23

For Q1'23, we estimate organic growth of 18% y-o-y along with an EBITA margin of 7.9%. The growth is likely to be partly driven by price increases, as grocery retailers and producers implemented renegotiated prices in mid-February. We could see non-recurring costs related to the closing of the acquisitions of Privab Ystad, Privab Trollhättan and Privab's marketing company. Moreover, we would deem some additional net working capital release, preferably on the inventory side, to be positive, but overall we expect an approximately break-even operating cash flow figure in Q1'23.
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