Net sales reached SEK 703m in Q2, representing growth of 6%, although unchanged when adjusted for FX. We have assumed 12% growth for the full year. The weak organic growth was caused by the concerns previously seen in the US market – chiefly among tech companies – having spread to Europe and some other markets. EBITA for Q2 came in at SEK 106m, suggesting a margin of 15.1%. For the full year, we have forecast EBITA of SEK 350m and a margin of 12.3%. The quarter’s solid margin offers proof that the initiatives BTS has taken to increase profitability are bearing fruit. Based on the uncertain development in the quarter, the company has lowered its guidance to 2023 ending in line with 2022 (previously: 2023 to be a better year than 2022).

Since its listing in 2001 BTS has seen currency-adjusted growth of 13% on average, while EBITA has grown by 16% over the same period. Given BTS’s status as the leader in a fragmented market, we expect this growth to continue. Over the past two years, the margin has improved versus the historical average, leading to an increase in return on equity. Thanks to its strong past, we consider DCF the best valuation method for the company.

Q2 profitability demonstrates BTS’s strength