Elanders tracks worst day in over a year as it flags accounting issue

Elanders AB

13/04/2023 08:54

** Shares in Elanders  ELANb.ST  fall more than 6% after the
Swedish supply chain management firm flagged historical
accounting error of some SEK 70 mln ($6.77 mln) in its U.S.
subscription box business and posted preliminary Q1 results
    ** "This is in fact the second accounting issue for the
company since 2020 which is inevitably putting a dent to the
perceived quality of the company and its internal control," says
Nordea analyst Carl Ragnerstam
    ** Ragnerstam says that while the headline Q1 numbers were
light on the sales, the main reason for the share move remains
the accounting error
    ** Elanders reports Q1 sales of SEK 3.59 bln, 5% lower than
Nordea's estimate, while its EBITA margin of 6.0% was 20bp above
the broker's expectations
    ** The stock is on track for its worst day since March 1,
2022

($1 = 10.3443 Swedish crowns)