Sweden's ITAB Group Q3 profit falls on one-off costs
Sweden's ITAB Group Q3 profit falls on one-off costs
Overview
Sweden retail store solutions provider's Q3 sales rose 3% yr/yr
Q3 operating profit fell sharply, impacted by non-recurring ERP and integration costs
Company reported a net loss and negative operating cash flow for the quarter
Outlook
Company did not provide specific financial guidance for the current or coming quarters
Result Drivers
NON-RECURRING COSTS - Co said Q3 operating profit was charged with MSEK -242 in non-recurring items, mainly integration, restructuring and ERP impairment costs
SYNERGY REALISATION - Co said efforts to realise synergies from HMY acquisition are proceeding according to plan and positively impacting underlying profitability, per CEO Björn Borgman
CAPACITY UTILISATION - Co said it is working to enhance and better balance capacity utilisation in production facilities, including coordination of UK and Türkiye sites, to create more flexible cost structure, per CEO Björn Borgman
Company press release: ID:nWkr8yM357
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | SEK 3.40 bln | SEK 3.31 bln (2 Analysts) |
Q3 Adjusted EPS | Miss | -SEK 0.29 | SEK 0.57 (1 Analyst) |
Q3 Net Loss |
| SEK 68 mln |
|
Q3 Operating Profit | Miss | SEK 6 mln | SEK 118 mln (2 Analysts) |
Q3 Operating Cash Flow |
| -SEK 168 mln |
|
Q3 Operating Margin |
| 0.20% |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the business support supplies peer group is "buy"
Wall Street's median 12-month price target for Itab Group AB is SEK21.50, about 36.4% above its November 2 closing price of SEK15.76
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Nov 2 - Finnish soundproof office pod maker Framery's Q3 boosted by N.America demand
Nov 2 - Swedish manufacturing PMI rises to 60.5 points in October
Nov 2 - Finland's Aspo Q3 net sales rise 12%
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.)