Sweden's Granges Q2 adjusted EBIT beats estimates on pricing, productivity gains
Sweden's Granges Q2 adjusted EBIT beats estimates on pricing, productivity gains
Overview
Sweden aluminium recycler's Q2 sales volume grew 5% yr/yr, reaching a record
Adjusted EBIT for Q2 rose 33% yr/yr and beat analyst expectations
Company achieved record sustainability performance with lowest-ever carbon emissions intensity
Outlook
Granges expects Q3 Asia sales volume to fall by about 10 ktonnes year-on-year, mainly in low-margin products
Company expects Q3 sales volume in other regions to grow at a mid-to-high single-digit rate
Granges expects foreign exchange rates to be relatively neutral versus Q3 last year
Result Drivers
MARKET SHARE GAINS - Co said sales volume growth was driven by market share gains in Americas and Europe, despite weak end-user demand
PRICING AND PRODUCTIVITY - Pricing improvements, increased recycling, and productivity gains offset cost increases and negative currency effects
ASIA FIRE IMPACT - Fire at Shandong facility confined sales volume loss to lower-margin business, limiting financial impact
Company press release: ID:nMFN9mkyDz
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| SEK 3.73 |
|
Q2 Net Income |
| SEK 405 mln |
|
Q2 Adjusted EBIT | Beat | SEK 580 mln | SEK 507.28 mln (5 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aluminum peer group is "buy"
Wall Street's median 12-month price target for Granges AB is SEK210.00, about 24% above its July 15 closing price of SEK169.40
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.)