Lagercrantz - Exceptional margins
Sales SEK 1,118m up 1% y-o-y (ABGSCe +5%) EBITA 192m, +7% vs. ABGSCe and 8% vs cons Expect cons. EBITA estimates up 3-4% Q4’20/21 results Sales came in at SEK 1,118m (-4% vs ABGSCe 1,166m and -4% vs Factset consensus 1,168m) with organic growth of -3% (0% ABGSCe), M&A +7% and FX -4% contribution to sales. Order intake up 5% compared to Q4 last year.
Adj. EBITA was SEK 192m (+7% vs ABGSCe 179m, +8% vs cons 178m), on margin of 17. 2% (ABGSCe 15.
4%, cons 15. 2%). Net Income 126m (+4% vs ABGSCe 122m, +7% vs cons 118m).
Solid profitability largely driven by good opex control. Forecast changes and outlook On isolated Q3’20/21 numbers, expect consensus to increase EBITA estimates by 3-4% ‘21/22e. The fourth quarter did not a display as a strong sequential recovery as we expected on sales, but we note that order intake was up 5% y-o-y indicating a return to normal.
This is indicating a solid recovery as expected (we have +8% organic growth in 21/22e). Share view The share is up 21% YTD, trading at 29x NTM EV/EBITA, a premium of 2% to its core peer group. We expect a positive reaction to today’s results on the back of exceptional margins and positive estimate revisions.
More details expected during conference call at CET 10. 00, dial-in: +46 8 619 7530. PIN: 332347#.
