Sweden's Svedbergs Q2 sales rise on UBC acquisition
Sweden's Svedbergs Q2 sales rise on UBC acquisition
Overview
Sweden bathroom products group's Q2 net sales rose 3.7% yr/yr, organic growth 1.8%
Q2 EBITA and EPS declined, with margins impacted by higher UK logistics costs
Company acquired majority stake in Czech bathroom group UBC during the quarter
Outlook
Svedbergs expects underlying demand for its products to remain good despite geopolitical uncertainty
Company sees good conditions for profitable growth with UK distribution centre transition and UBC integration
Svedbergs says its decentralised model and geographic breadth provide flexibility in a changing market landscape
Result Drivers
UBC ACQUISITION - Co said acquisition of Czech bathroom group UBC contributed to sales growth and strengthened position in Central Europe
UK LOGISTICS COSTS - Co said earnings were temporarily affected by higher logistics costs in the UK due to transition to new distribution centre
PRODUCT MIX AND PRICING - Co said strong gross margin reflected favourable product mix and consistent work on pricing, production and purchasing
Company press release: ID:nMFN6zns7W
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 591.90 mln |
|
Q2 EPS |
| SEK 0.78 |
|
Q2 EBIT |
| SEK 68.50 mln |
|
Q2 EBITA |
| SEK 81 mln |
|
Q2 Free Cash Flow |
| SEK 41.60 mln |
|
Q2 Pretax Profit |
| SEK 55.90 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Svedbergs Group AB is SEK75.25, about 20.2% above its July 14 closing price of SEK62.60
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 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.)