Humble Group: Positive gross margin surprise - ABG

Organic growth of 18% vs. cons. 9%
Adj. EBITA SEK 162m, 2% below cons, in line with ABGSCe
Surprisingly strong gross margin


Q4'23 outcome

Q4 sales came in at SEK 1,963m (+3% vs ABGSCe 1,883m; +4% vs cons 1,862m), gross margin at 31.7% (vs ABGSCe 29.2%, cons 29.3%) and adj. EBITA at SEK 162m (in line with ABGSCe 162m; -2% vs cons 166m). Reported organic growth was +18% (vs 9% ABGSCe; 9% cons), which is positively surprising given the declining organic growth trend in the last three quarters. The gross margin was significantly stronger than we had expected, and appears to be driven by Future Snacking and Sustainable Care — the company's highest quality segments. M&A-related growth was +4% and FX contribution was -2%, respectively. Operating cash flow (with interest expenses subtracted and NRIs added back) was SEK 262m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/humble-group/Equity-research/2024/2/humble-group---positive-gross-margin-surprise/