Organic sales decline of 9% y-o-y
EBIT margin of 5.2% (8.1%)
Signs of stabilised market conditions
Continues to take market share in a tough market
Ogunsen reported Q1 sales of SEK 117m (129m), corresponding to a y-o-y decline of 9%. Consulting services revenue decreased by 8% y-o-y, while recruitment services saw a steeper drop of 18% y-o-y. This result was 4% below ABGSCe. However, we note that Ogunsen again outperformed key peers PION Group and Ework, which saw Q1 sales declines of 21% and 17%, respectively. Adj. EBIT was SEK 6.1m (10.4m), translating to an adj.EBIT margin of 5.2% (8.1%), a bit below our expectation of SEK 8m. The company incurred additional costs of SEK 2.2m in the quarter related to workforce reduction efforts, but it is unlikely that we will see further measures, as it also saw stabilised market conditions in the quarter. Historically, downturns in the staffing industry usually persist for 6-8 quarters, and now we have seen seven quarters of contraction.