Svedbergs Group: Thebalux delivered a Q1 beat - ABG
* Net sales SEK 584m, +1% vs ABGSCe, -2% vs Factset cons. * EBITA SEK 93m, +8% vs ABGSCe, +3% vs cons * Says diverse supplier base is an advantage
ANNONS
Q1 in brief: gross margin-driven beat
Our impression is that Svedbergs Group's Q1 report is better than Factset consensus estimates. The Group reports net sales of SEK 584m, for organic growth of 3% y-o-y. This is +1% vs ABGSCe and -2% vs cons. Looking closer at the three largest segments, Svedbergs grew -2%, Roper Rhodes by -3.5% (+5% org.) and Thebalux by +4% (+9% org.), which means the deviation to our sales estimate was driven by Thebalux primarily. Gross margins grew 320bp y-o-y to 49.2% driven by the soft USD primarily. This margin expansion was offset by higher distribution costs related to Roper Rhodes, growth (and growth in SKUs) in recent years have meant it was necessary to add third-party logistics partners with a higher cost. This is the reason for iRhoper Rhodes' upcoming move to a new consolidated warehouse. EBITA margins grew by 20bp y-o-y to 15.9% for EBITA of SEK 93m, -1% y-o-y. This was +8% vs ABGSCe and +3% vs cons. By segment, the EBITA beat looks driven by the Thebalux segment, which reported an EBITA margin of 28% driven by the higher volumes and efficiency improvement in production.
Outlook: geopolitical tension presents manageable issues so far
In Q4, Svedbergs Group stated that it looked forward to a gradually improving market in 2026, while also noting material geopolitical uncertainty. In the Q1 report, it flags that geopolitical tension presents a challenge. It says that there are some issues with global logistics but that it so far has not been negatively impacted thanks to its diverse supplier base and long supplier relationships. The CEO highlights that the geographical diversification in the Group gives maneouverability.
The report moves consensus '26e EBITA by +1%
The share has returned -18% L3M, which can suggest low expectations into numbers, and is now trading at 11x-9x our '26e-'27e EV/EBITA vs a historical trading range of 7x-11x NTM. The Q4 report moves consensus' '25e EBITA by +1%.
Svedbergs Group hosts a conference call and Q&A today at 10:00 CET, a dial-in link can be found here.
