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Third party research

Inission: Q2 margin declines, but positives as well - ABG

Inission

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

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Weak Q2 margin of 5.0% (7.3%), but book-to-bill improved to 0.81
We cut '24e-'26e EBITA by 5%, '24 targets look challenging
New bank terms soften EPS cuts (3-1%), lower interest, higher NWC


Q2: Margin suffers as costs lag, but book-to-bill improved

Sales came in slightly above our expectations at SEK 570m, up 1% y-o-y (8% M&A, -7% org. & FX), but the EBITA margin was only 5.0% (7.3%), missing our estimate of 6.8%, mainly due to higher than anticipated personnel costs, driven by annual salary increases and a lagging impact of cost reductions. Book-to bill improved to 0.81, compared to the Q4 low of 0.59, and the Q1 figure of 0.73. Lease adj. FCF was SEK -29m, driven by an increase in receivables of SEK 30m. The increase was due to the decision to stop factoring invoices following new improved terms with the company's bank.
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