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Nilörn: Strong Q3 but demand is starting to wane - ABG

Sales +5% vs. ABGSCe, EBIT +25% vs. ABGSCe
Organic growth of 2% in line with ABGSCe 2%
We expect cons. to lift EBIT est. by 5-6%


Q3’22 impressions

Nilörn reports Q3’22 sales of SEK 232m (+5% vs. ABGSCe 221m), gross profit SEK 104m (+8% vs. ABGSCe 97m), EBIT SEK 37m (+25% vs. ABGSCe 30m), net profit SEK 28m (+25% vs. ABGSCe 22m). Order bookings have decreased by 3%, indicating that a slowdown in consumer demand is starting to leave a footprint. That said, the company has grown sales by 14% y-o-y with an EBIT margin of 16%, partially due to high capacity utilization of the company’s factories. Overall, we deem the operating performance of the business to be impressive.
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