Inderes Group - Q1: In line report, but market outlook taking step back - SEB

Inderes posted a broadly in line Q1 report with sales slightly ahead (likely thanks to large AGMs in March) of SEBe. However, in rounded numbers, EBITA came in line with our estimate. While the March performance was better than expected our negative notes go to Sweden, where the company has seen churn in research contracts. Also, while the guidance remains unchanged, the company's market view is more cautious. We think a neutral reaction is warranted based on first read.

Outcome: Sales slightly ahead, EBITA in line

Inderes's Q1 sales came in at EUR 5.3m, topping our estimate of EUR 4.1m by -4%. As Jan-Feb sales were already reported the deviation owes to March sales, which saw 7% growth y/y while we had expected minor decline due to timing of AGMs. However, now the company notes that it has delivered large AGM packages. Also the Finnish event business had good month and software business continues its strong growth. The Q1 EBITA of EUR 0.5m was in line with our estimate, meaning the costs came in somewhat above our input. The higher materials and services costs are likely due to large AGM productions, we think. The international operations accounted for 20.5% of sales compared to 21.7% year ago. This implies flat y/y international revenue. Given that we think the revenue from other countries has increase slightly, the Swedish sales were still declining.