Sweden's Svedbergs Q3 net sales rise on UBC acquisition
Sweden's Svedbergs Q3 net sales rise on UBC acquisition
Overview
Sweden bathroom products maker Q3 net sales rose 16.5%, driven by UBC acquisition
Q3 EBITA margin declined to 13.4% from 15.1% due to lower-margin UBC and higher costs
Company incurred SEK 9.5 mln in non-recurring restructuring costs during the quarter
Outlook
Company sees cautiously positive market signals despite continued uncertainties
Company aims to gradually return to its long-term EBITA margin target of 15%
Logistics costs expected to normalize after new solution is implemented in Q1 2027
Result Drivers
UBC ACQUISITION - Co said Q3 revenue growth was mainly driven by UBC acquisition, which contributed 17.1% and expanded presence in Central Europe
HIGHER COSTS - Co attributed lower profit margin to UBC's lower margin, increased transportation costs, adverse currency effects in UK, and elevated logistics costs
RESTRUCTURING COSTS - Non-recurring restructuring costs of SEK 9.5 mln affected operating profit in Q3
Company press release: ID:nMFN2qjs1Y
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 615.90 mln |
|
Q3 EPS |
| SEK 0.76 |
|
Q3 EBIT |
| SEK 68 mln |
|
Q3 EBITA |
| SEK 82.70 mln |
|
Q3 Free Cash Flow |
| SEK 76.40 mln |
|
Q3 Pretax Profit |
| SEK 53.80 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 SEK74.75, about 29.8% above its October 21 closing price of SEK57.60
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Oct 20 - Sweden's Byggmax Q3 sales and profit rise
Oct 21 - Sweden's Inwido Q3 sales rise 22%, order backlog hits record
Oct 20 - Wickes' third-quarter sales climb as low-price strategy draws shoppers
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.)