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Third party research

Avensia: Weaker end market leaving a mark on demand - ABG

Avensia

This is a third party research report and does not necessarily reflect our views or values

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Sales +8% y-o-y, but EBIT declined y-o-y


‘22e-’24e EBIT cut by 28-46% on lower utilisation


Well-positioned long-term in the e-commerce niche


Sales of SEK 92m (-3% vs. ABGSCe), EBIT SEK -1.4m

Going into Q3, we had assumed decelerating sales growth, reflecting tough comps combined with a relatively slow net recruitment rate in recent quarters. Even so, sales of SEK 92m (+8% y-o-y) missed our forecast of SEK 95m due to lower utilisation as the company’s end market has recently displayed weakness. Based on data from Ework, we estimate market prices to be up by high single digits y-o-y in Q3, suggesting lower utilisation of -14% as Avensia’s headcount grew 15% y-o-y. Here, Avensia says that some of its customers have recently reduced their spending due to weaker retail sales. Although opex was in line with our forecast (+19% y-o-y, with Avensia having guided for growth-related costs to stay elevated in H2), EBIT of SEK -1.4m came in below ABGSCe of SEK 1.4m due to the lower utilisation.
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