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Ogunsen: Weaker market finally takes its toll - ABG

OGUN BThird party research2023-08-31 07:36

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

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Organic sales growth +2% y-o-y
EBIT margin of 7.1% (10.9%)
Challenging demand picture short-term


Q2: Sales 9% and EBIT 43% below ABGSCe

Ogunsen preannounced its Q2 numbers on 17 July, as they were clearly below what the market expected. Net sales were SEK 128m (+2% y-o-y) and EBIT was SEK 9.1m (13.7m), 9% and 43% below ABGSCe, respectively. We are not that surprised by the lower sales growth, however, as the Swedish staffing market experienced slower growth in general. In Q1, Ogunsen performed much better than the overall market, whereas our expectations rose, and now it was flat against the general market, causing the 9% deviation versus our estimates. What is a bit more worrying is the sharp drop in profitability, but we think this is a consequence of higher than normal wage inflation in combination with a weaker market.