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Ogunsen: Biding its time - ABG

OGUN BThird party research28.02.2024, 10.36

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

Download report (PDF)
Organic sales decline of 7% y-o-y
EBIT margin of 9.5% (13.2%)
We look for a rebound in H2'24


Q4: Sales roughly in line with ABGSCe, better profitability

Ogunsen's Q4 results were slightly better than we expected. Sales of SEK 130m (-7% y-o-y) was 1% below ABGSCe. We do not have the market data for Q4 yet, but we seem to have a similar trend as in Q3, when sales were down 6% y-o-y. As we saw deteriorating Swedish service PMIs in Q4, we would not be surprised if the market is also down as much or more than what the company reported in Q4. EBIT of SEK 12.4m (18.5m) was much better than we expected, showing impressive resilience in a tough market. It is looking increasingly likely that profitability will not dip to the low levels we saw in '19-'20, and Ogunsen appears much leaner than before. DPS of SEK 3.50 (4.50) was also a bit higher than we anticipated, giving a dividend yield of over 9% at the current share price.