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Third party research

Inission: Cost reductions lag, but book-to-bill improving - ABG

Inission

This is a third party research report and does not necessarily reflect our views or values

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Sales +2%, but EBITA -24% vs. ABGSCe, driven by personnel costs
Slower cost reductions than we had thought, should catch up in H2
Book-to-bill has recovered to 0.81 from Q4'23 low of 0.59


Q2 results

Sales came in at SEK 570m (+1.8% vs. ABGSCe 560m), +1.4% y-o-y. EBITA adj. was SEK 29m (-24% vs. ABGSCe 38m), for a margin of +5.0% (ABGSCe +6.8%). The EBITA miss was driven by higher personnel costs than we anticipated, likely due to the continuous cost reductions carried out by the company to adapt to demand not taking effect as quickly as we had thought. EPS adj. came in at SEK 0.65 (-39% vs. ABGSCe 1.1), -49% y-o-y. FCF lease adj. came in at SEK -29m (-172% vs. ABGSCe 40m), -233% y-o-y. The poor FCF was driven by NWC effects which we expect to reverse in H2.
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