VBG Group Q3 sales rise on positive market performance, price adjustments
VBG Group Q3 sales rise on positive market performance, price adjustments
Overview
Sweden engineering group's Q3 sales rose 5.8% with organic growth in all divisions
Q3 operating profit declined, impacted by reorganization expenses in Mobile Thermal Solutions
Sales growth driven by positive market performance and price adjustments
Outlook
Company says business environment remains uncertain due to geopolitical and macroeconomic factors
Company notes stable demand with order bookings up 4.5% in the latest quarter
VBG Group focusing on price adjustments, cost control and operational improvements to address cost pressures
Result Drivers
PRICE ADJUSTMENTS - Co said price adjustments contributed to sales growth across divisions
BROAD-BASED GROWTH - Co reported organic growth in all divisions and geographic markets
REORGANIZATION COSTS - Workforce-related reorganization expenses in Mobile Thermal Solutions negatively impacted operating profit
Company press release: ID:nMFN6Zdzn1
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | SEK 1.45 bln | SEK 1.42 bln (1 Analyst) |
Q3 Operating Income |
| SEK 139.60 mln |
|
Q3 Organic Growth |
| 5.40% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy"
Wall Street's median 12-month price target for VBG Group AB (publ) is SEK415.00, about 33% above its October 26 closing price of SEK312.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Oct 27 - Sweden's Assa Abloy slightly beats Q3 sales estimates on strength in Americas and EMEIA divisions
Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake
Oct 27 - Sweden's Hanza Q3 net sales jump, helped by acquisitions
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.)