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Analytikerkommentar

Relais Q2 on Thursday: Facing figures from a subdued comparison period

Af Petri GostowskiCo. Head of Research
Relais Group

Translation: Original comment published in Finnish on 8/8/2023 at 6:00 am EEST

Relais 080823

Relais publishes its Q2 result on Thursday at about 9:00 am EEST. We expect the company’s net sales to have grown both organically and inorganically from the comparison period. We anticipate that the operating result has strengthened clearly from the subdued level of the comparison period. Relais has not provided numerical guidance for the current year, and we do not expect it to do so with the report either.

Slight organic and inorganic growth expected

We estimate that Relais' net sales have grown by 8% year-on-year to EUR 63.5 million. In our forecasts, net sales have grown organically by 2%. In addition, the growth will be reinforced by the acquisitions of Skeppsbrons, SET A/S and Adita. Overall, we estimate that the demand picture for spare parts and equipment as well as for the repair and maintenance business has remained reasonably good in Q2. We expect the Swedish krona to still cause headwind for the growth rate as it has continued weakening and slows down reported growth.

Earnings expectations are clearly above the sluggish comparison period

Our estimate for Relais' Q2 EBITA (excl. PPA amortization) is EUR 5.0 million, which indicates a clear improvement from the comparison period. This corresponds to an EBITA margin of 7.9% and a clear increase to the 5.8% of the comparison period. Thus, we expect Q2 profitability to return to normal levels from a comparison period plagued by certain operational challenges and the COVID pandemic. We increased our net financial cost estimates slightly in connection with the preliminary result, which reflects expectations of exchange rate differences caused by the weakening krona. Still, reflecting the growth in the operating result, we expect Q2’s adjusted EPS to climb well over the comparison period and be EUR 0.13 per share (was EUR 0.16 per share).

Instead of guidance, attention is focused on market comments

Relais has not provided numerical guidance for the current year, and we do not expect it to do so now either. In connection with the results, our attention is focused not only on the actual financial review, but also on the company's comments on the market outlook and the results of the efficiency program launched last year. Last week Relais announced an acquisition in Norway where it acquired a workshop equipment business. We will include the small acquisition relative to the company’s size class in our estimates in connection with the Q2 report.

Relais Group is an importer and wholesaler for the automotive industry. The Group focuses mainly on the development of vehicle electronic equipment for trucks. Examples of products that the company delivers include lighting products, applications for warning lights, lighting and camera systems, as well as other spare parts for heavy vehicles. The largest operations are in the Nordic and Baltic markets, with customers in the aftermarket industry.

Read more on company page

Key Estimate Figures07.08.2023

202223e24e
Omsætning260,7277,5289,6
vækst-%9,6 %6,4 %4,4 %
EBIT (adj.)23,029,831,9
EBIT-% (adj.)8,8 %10,7 %11,0 %
EPS (adj.)0,800,971,12
Udbytte0,400,420,44
Udbytte %3,9 %2,5 %2,6 %
P/E (adj.)12,717,315,0
EV/EBITDA9,09,99,3
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