Svedbergs Group: Project recovery delayed in Sweden - ABG
Q2 report due 18 July Q2e net sales SEK 555m, EBITA SEK 79m We leave our FVR unchanged at SEK 44-59
ANNONS
Delayed project market recovery
Macro indicators are gradually getting better overall for Svedbergs Group, extending the trend from previous quarters. House transactions in Sweden grew 15% y-o-y in Q1, in the UK by 49% (partly for tax reasons) and in the Netherlands by 16%. The Swedish primary transaction market remains soft and turned even more sour in Q1 vs Q4, however. LTM building starts are ~50% lower than in 2019, so we do not expect a significant ramp-up in Swedish project sales until Q4'25 at the earliest given the project market delay. Given the large exposure to the project market for the Svedbergs brand (18% of '24 sales), this should hold back the Group's recovery somewhat near-term. In Q2, we expect price adjustments to drive a y-o-y gross margin improvement of 150bp, partly offset by a higher selling expense ratio to fuel more growth. In total, we forecast an 80bp EBITA margin improvement for EBITA of SEK 79m, +4% y-o-y.
