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Third party research

B3 Consulting Group: Combatting low utilisation - ABG

B3 Consulting Group

This is a third party research report and does not necessarily reflect our views or values

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We lower '24e and '25e adj. EBITA by 3% and 6%
5% EBITA growth in '24e driven by HQ cost cuts
'24e EV/EBITA of ~8x


Little can be done to combat a weak market

Q4 was a tough quarter for IT consulting businesses. B3's sales declined by nearly 12%, whereas EBIT declined y-o-y by 57%, again due to low utilisation. Compared to FactSet consensus, B3 generated an adj. EBIT that was ~10% below expectations. On a positive note, the cost optimisation program appears to be progressing ahead of plan, and we view the more strict yet proactive stance on stopping underperforming subsidiaries as positive from a longer-term perspective.
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