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Humble Group Q2: Beats on topline and earnings - ABG

• Organic growth of 13% vs. ABGSCe 16%
• Adj. EBITA SEK 141m, 9% above ABGSCe
• We expect cons. to make marginally pos. EBITA rev.

Q2'23 outcome
Q2 sales came in at SEK 1,710m (+5% vs. ABGSCe 1,627m), EBITA at SEK 129m (in line with ABGSCe 129m) and adj. EBITA at SEK 141m (+9% vs. ABGSCe 129m). Reported organic growth was +13% vs ABGSCe +16%, suggesting a marginal deceleration in organic growth as the company shifts focus to integrating some of the larger businesses in the group and improving operating efficiency. M&A-related growth was +60% and FX contribution was +2%, respectively. Operating cash flow was much better than expected, even after deducting for NRIs from tax deferrals.
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