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Humble Group: More than just bamboo toothbrushes - ABG

Minor estimate changes
Expect an array of one-offs related to refinancing
'24e lease adj. FCFE yield excl. earn-out payments of ~11%


What to expect in Q3'23e

For Q3'23, we expect sales of SEK 1,817m, implying 13% organic y-o-y growth in addition to 3% FX growth and 18% M&A growth. We anticipate a gross margin of 30% given the company's history of being able to maintain a gross margin at the 30% level despite cost inflation and elevated freight costs. Our updated EBITA estimate is SEK 155m, which corresponds to an EBITA margin of 8.5%. In the quarter, we expect one-off costs (SEK 93m) related to the early bond redemption (SEK 63m), advisory costs related to the bank loan origination and the directed share issue (SEK 30m).
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