• Adj. EBIT SEK 160m, 7% vs. ABGSC, 2% vs. cons
• No material changes to estimates expected
• Conference call at 10:00 CET

Q1 details

Sales SEK 3,124m (0% vs ABGSC 3,136m and 0% vs cons 3,125m), adj. EBITA SEK 160m (7% vs ABGSC 150m and 2% vs cons 157m), EBIT SEK 125m (21% vs ABGSC 103m and 2% vs cons 123m), net profit SEK 62m (17% vs ABGSC 53m and -7% vs cons 67m). Organic growth was 2% (vs. ABGSC 2% and cons 3%). FCF of SEK 95m increased 86% y-o-y (51m), for a 59% conversion from adj. EBITA (33%). Management said the efficiency program continues to progress according to plan, which should render further profitability gains later this year. Important IFM contract extensions were signed during the quarter, including the already announced SAAB and ICA contracts and Heimstaden, further supporting our thesis that the Ericsson situation was a one-off, as well as new contracts signed.

Preliminarily estimate changes

We do not expect any material changes to consensus estimates on the back of this report.

Final thoughts

Report solid across the board. Sweden growing despite the lost Ericsson contract and Denmark delivering a solid beat on profitability (starting to scale on the higher revenue base). With several new contracts added and a favourable growth outlook presented by management, we believe that Coor is well-positioned for improved organic growth coming quarters accompanied by profitability gains. Management will host a presentation of the report at 10:00 CET (link to participate).