Alligo Q2 revenue eases past estimates on sales initiatives, acquisitions
Alligo Q2 revenue eases past estimates on sales initiatives, acquisitions
Overview
Sweden workwear and tools distributor's Q2 revenue grew 5.7% yr/yr, organic growth at 1.3%
Adjusted EBITA for Q2 rose to SEK 187 mln, adjusted EBITA margin increased to 7.2%
Company completed two acquisitions and plans logistics centre expansion in Örebro
Outlook
Company says market remains cautious in several customer segments
Alligo prioritizes sales work and aims to broaden its customer base
Result Drivers
CAUTIOUS MARKET - CEO said Q2 was marked by stable development and improved profitability, though several customer segments remained cautious
SALES INITIATIVES - Co prioritised sales work, aiming to gain more small and medium-sized customers and broaden its customer base
ACQUISITIONS - Completed two acquisitions in May, adding operations in Växjö, Vetlanda and Kalmar
Company press release: ID:nMFN6Wjfp9
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | SEK 2.61 bln | SEK 2.59 bln (2 Analysts) |
Q2 Gross Margin |
| 40.70% |
|
Q2 Adjusted EBITA |
| SEK 187 mln |
|
Q2 Adjusted EBITA Margin |
| 7.20% |
|
Q2 EBIT |
| SEK 158 mln |
|
Q2 EBIT Margin |
| 6.10% |
|
Q2 Organic Growth |
| 1.30% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Alligo AB is SEK179.00, about 29.7% above its July 16 closing price of SEK138.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)