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Third party research

Vestum: Bigger decline from divested units - ABG

Vestum

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

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Adj. EBITA -12% vs cons, but organic growth better
Est's down 3-4%, but better growth outlook maintained
Reduced gearing allows the company to remain offensive on M&A


Q1 results

Sales SEK 900m (-13% vs ABGSC, -12% vs cons), -27% y-o-y whereof 3% organic (vs ABGSC -3%). Adj. EBITA 78m (-18% vs ABGSC, -12% vs cons), -22% y-o-y (but only -4% y-o-y vs restated pro forma numbers excluding the divestments), margin 8.7% (ABGSC 9.2%, cons 8.7%). Cash conversion -41% (70% Q4’24), impacted negatively by increased working capital to drive organic growth and a bond-related one-off (25m). Gearing reduced to 2.1x (2.7x Q4’24) from divestments. Miss was primarily driven by a bigger decline than expected from divestments while the organic sales growth was better than expected which bodes well for coming quarters. Flow Technology, however, was slightly weaker than we expected with flat EBITA y-o-y despite the acquisition of PDAS (Q1 EBITA -16% vs ABGSC).
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