Generic: Scalability on show - ABG

6% organic sales growth y-o-y
SaaS momentum drives gross margin uplift...
... and leads to impressive EBIT growth of 41% y-o-y


Q1: Sales growth of 6%, EBIT margin of 21.7% (16.3%)

The Q1 report really showed the scalability of Generic's business model as it was able to record 41% EBIT growth y-o-y despite moderate sales growth of 6% y-o-y (all organic). The main reason for the strong EBIT growth was a continued improvement in the gross margin, up 1.1pp q-o-q and 5.1pp y-o-y to 44.9% as the company currently sees healthy demand for its Saas offering DOCS in conjunction with a lower proportion of low-margin sales (SMS/email). Opex was up in line with sales growth at 6% y-o-y. This resulted in sales of SEK 45m (42m) and EBIT of SEK 9.7m (6.9m), which was 3% below ABGSCe on sales but in line on EBIT. The lower sales growth y-o-y was an effect of tough comparables and low demand within logistics and e-commerce.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2025/5/generic---scalability-on-show/