Storskogen hits bottom of STOXX as Q1 margins weigh on shares
17/05/2022 08:40
** Shares in the Swedish investment holding company
Storskogen STORb.ST drop 14% after the company published its
Q1 report with profit margins weaker year-on-year urn:newsml:reuters.com:*:nFWN2X905V
** J.P. Morgan says Storskogen's Q1 numbers show margin
pressure, with adjusted EBITA margin coming in at 8.2%, lower
than the 9.4% the year before
** The broker cites sickness rates at Storskogen's business
units, supply chain disruption, inflation, and a delay in price
increases as main challenges for the company during the quarter
** The broker adds that Storskogen's capacity to continue
the high pace of acquisitions will slow down due to leverage and
potential constraints in raising new equity given market
conditions
** In order to see a positive catalyst for the shares it
will have to shift focus to operational improvements, JPM says
** Storskogen is currently at the bottom of the STOXX 600
index .STOXX with shares on track for their worst day since
February
(Reporting by Agata Rybska)
((agata.rybska@thomsonreuters.com))