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Humble Group: Strong cash flow despite gross margin lag - ABG

Organic growth of 12% vs. ABGSCe 13%
Adj. EBITA SEK 158m, 2% above ABGSCe
Strong operating cash flow


Q3'23 outcome

Q3 sales came in at SEK 1,811m (in line with ABGSCe 1,817m), gross margin at 29.2% (-0.8pp vs. ABGSCe 30.0%) and adj. EBITA at SEK 158m (+2% vs. ABGSCe 155m). Reported organic growth was +12% (vs. ABGSCe +13%), suggesting that the organic growth rate is moderating as the pricing component diminishes slightly. M&A-related growth was +19% and FX contribution was +3%, respectively. Operating cash flow (with interest expenses subtracted and NRIs added back) was SEK 122m, which is better than we expected.
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