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Eksterne analyser

Embellence Group Q1: underlying performance in line - ABG

Embellence Group

Dette er en ekstern analyse og afspejler ikke nødvendigvis vores perspektiv eller værdier.

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Net sales SEK 202m, -3% vs ABGSCe and Factset cons.
EBITA SEK 32m vs ABGSCe and cons. SEK 34
Sees markets stabilising and no tariff impact


Q1 in brief: In line adjusted for the volatile Artscape

Embellence Group's Q1 report is a tad below consensus in general. Net sales of SEK 202m was -3% vs ABGSCe and Factset cons, and corresponded to -6% y-o-y growth (-7% org.). Growth was driven by the Cole & Son and External Manufacturing segments, which grew 7% and 40% y-o-y respectively, External Manufacturing to reach the new higher level since Q2'24, while Artscape was a detractor with growth of -46% on a very tough comparable. The gross margin was 62.4%, +410bp y-o-y, extending Embellence's trend of clearly improving gross margins. The opex ratio grew as well, however, which resulted in an EBITA margin expansion of 20bp to 15.8% and EBITA of SEK 32m, -5% vs ABGSCe and -5% vs cons. Almost the entire miss vs consensus estimates on topline (and, by extension, EBITA) can be attributed to the softer Artscape sales, for which volatility is very high due to large orders. As such, we believe the underlying performance is rather in line with expectations.
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