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Nordic Waterproofing: Strong sales but softer margins - ABG

EBIT SEK 66m (-9% vs. ABGSCe SEK 72m)
Q4 numbers imply EBIT downgrades of 2%
Trading at 12x '23e EV/EBIT (on pre-Q4 numbers)


Q4 outcome

Sales were SEK 1,045m (+4% vs. ABGSCe 1,008m), up 17% y-o-y, of which +6% org growth (ABGSCe 2%). Price increases contributed +13% to organic growth, while volumes were down 7%. Despite higher than expected sales, EBIT amounted to 66m (-9% vs. ABGSCe 72m), for an EBIT margin of 6.3% (ABGSCe 7.2%). Net profit was SEK 48m (-6% vs. ABGSCe 51m), and a dividend of SEK 7.0 (ABGSCe 6.9) per share is proposed. On a segment level, Products & Solutions was significantly below our expectations, to our understanding largely due to weak performance in the prefab business. Meanwhile, Installation Services came in better than expected, with strong performance across all geographies.
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