Svedbergs - 14% adj. EBITA beat

Sales 1% vs ABGSCe Adj. EBITA 14% vs ABGSCe We expect cons. upgrades of low single-digits Organic growth of 6. 5% Sales grew 19% y-o-y (6.

5% organic, -1. 5% fx, 14% M&A) and came in at SEK 202m, which was 1% above our expectations. Norway is driving group growth at 11% y-o-y, compared to Sweden at 5% and Finland at -4% growth y-o-y.

The company continues to experience tailwinds from the strong end-market, which we see continuing going forward. Positive on profitability The company is continuing its cost-efficiency journey. In sum, the company reported an adj.

EBITA margin of 14. 2% for an adj. EBITA of SEK 28.

7m, which was 14% above our expectations. The company has been able to offset external uncertainties such as raw material costs swiftly. Operational leverage continues to shine through, with the company growing its EBITA by c.

20% organically on its organic sales growth of 6. 5%. Upbeat forward-looking comments Svedbergs is continuing its solid performance.

Just adjusting for today’s results would raise our ‘21e adj. EBITA estimates by 3. 5%.

We expect positive consensus low single-digit estimate revisions on ’21-‘22e on the back of the strong result. We note positive forward-looking comments in the report, with the company noting the strong end-markets both within the project and consumer segment going forward.