Organic sales decline of 11% y-o-y
EBIT margin of 8.1% (11.7%)
Demand in Q2 at the same level as Q1
Q1: weaker than we expected, but still OK
Ogunsen's Q1 numbers were weaker than we expected, as sales growth dipped further leading to lower profitability. Sales of SEK 129m (-11% y-o-y) was 4% below ABGSCe. We do not have the market data for Q1, but our view is that it has been a weak market overall. As a comparison, sales at its peer PION Group were down 19% y-o-y in Q1. EBIT of SEK 10.4m (16.8m) was 19% below ABGSCe, as the lower sales volume caused the proportion of fixed costs to become too large to maintain decent profitability. With Q2 demand at the same level as Q1 in April, and with positive signs in the consultancy part of the business starting to emerge, it looks like profitability could stabilise over the 8% mark. If that materialises, it would not be the end of the world.