Svedbergs reports a Q1’22 sales SEK 488m (21% vs ABGSC 402m), Gross profit SEK 200m (16% vs ABGSC 173m), EBIT SEK 68m (27% vs ABGSC 53m), PTP SEK 64m (26% vs ABGSC 51m), EPS SEK 1.49 (30% vs ABGSC 1.14). The operating cash flow amounted to SEK 58m. All in all, Svedbergs is starting off the year strong, performing well across the board. We are especially positive about mgmt. stating that its price hikes have been well received by the market, and that the group does not experience any disruptions to meet the demand on its markets.
Q1’22 thoughts and outlook
In Q1, Svedbergs grew group sales by 142% y-o-y to SEK 488m (incl. 13% organic). The M&A-driven growth solely stems from the Roper Rhodes acquisition, which now is included in the full quarter. Roper Rhodes grew above our expectations, constituting c. 53% of the quarterly sales. Overall, all brands (Svedbergs, Macro Design, Cassoe, Roper Rhodes) and markets grew well in the quarter, hence contributing to the sales growth. In line with our expectations the gross margin contracted by 2.4pp y-o-y to 41% (-2pp vs. ABGSC est. of 43%), foremost on the back of the integration of Roper Rhodes that has below-group gross margin. Furthermore, EBITA came in at SEK 73m (32% above ABGSCe of SEK 56m), for a margin of 15% (+1.2pp vs. ABGSC est. of 13.8%), up 0.8pp y-o-y. Regarding the outlook, mgmt. states that it is especially positive about the growth opportunities in UK, but also emphasize its humble outlook for the rest of the year considering the surging inflation and interest rate hikes, which could affect the demand ahead.
We expect minor est. revisions from cons.
Following today’s report, we expect cons. to make minor positive estimate revisions. The Svedbergs share is -41% YTD and has since the announcement of Stena Adactum’s public cash offering, on March 22, of SEK 50 per shar ...
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