20% sales growth in Q2 Adj. EBITA flat y-o-y Solid early demand for autumn '23/'24
Q2: Sales and adj. EBITA +4% and 6% above ABGSCe
Cedergrenska reported a solid Q2, with sales of SEK 223m (+20% y-o-y), of which we estimate ~7% was organic growth. It was 4% above ABGSCe, mainly on higher other revenues. Inflation continues to squeeze margins, with adj. EBITA at SEK 11.4m (11.5m) for a margin of 5.1% (6.2%), or slightly better than our expected 5.0%. Cash flow was strong in the quarter, and the company continues to pay down its debt, with net debt just below SEK 33m at the end of the quarter. We also note solid early demand for the autumn semester, with continued strong demand for the larger Fredsborgskolan and Helleborus in the compulsory segment. Upper Secondary saw an increase in demand y-o-y, but the struggling Kista unit still has challenges filling up all classes.