Embellence Group: Look for D2C comments, Q2 to be uneventful - ABG
Q2 report due 17 July 2025 Q2e net sales of SEK 189m and EBITA of SEK 24m We reiterate our fair value range of SEK 35-42
ANNONS
Q2e: EBITA growth of -4% y-o-y
We expect little change in the underlying momentum from Q1. Our base case remains a slow recovery from the post-pandemic renovation slump, driven by growing transaction volumes. By brand, we expect Boråstapeter to grow similarly to Q1 (+1% y-o-y), 9pp organic acceleration in Wall&decò on much easier comps (for organic growth of 4%), normalised growth in Artscape, as the comparable quarter did not contain any large orders, and in external manufacturing, as the new, higher run-rate sales level was first reached in Q2'24. On the group level, this translates into a 9pp acceleration for organic growth of 2%. Adverse FX weighs by 4pp on Q2 net sales growth of -1.3% for net sales of SEK 189m. We expect limited margin differences y-o-y, for EBITA of SEK 24m vs. SEK 25m in Q2'24. In the report, we will look for more commentary from the new CEO on the D2C journey ahead.
