Carnegie Investment Bank
BTS Group
Date Title Alternative
2024-05-08 Heading towards easier comparables Download | Show Close
2024-04-04 Interestingly positioned Download | Show Close
2024-02-26 Strong finish to the year Show Close
2023-11-13 Implementing measures to strengthen profitability Show Close
Research | 13 Nov 2023 | BTS Group

Implementing measures to strengthen profitability

 

Diminishing profitability in the quarter

Net sales came in at SEK 633m in the quarter, down 1% when adjusted for currencies. All geographical segments showed FX-adjusted results around zero, suggesting that the uncertainty in the North American market that started in late 2022 has spread globally. EBITA was down 19% y/y to SEK 53m, with a margin of 8.4%. The decline was partly the result of extraordinary costs of SEK 1.2m stemming from the closure of a local office in Spain in order to reduce the cost base.

Ambitious guidance for current year

We leave our estimate for turnover unchanged for this year as we have previously anticipated a slowdown in H2. We lower our EPS estimate for this year by 6.9% though. In our view, the maintained guidance is ambitious given the market situation, with a record quarter required for the company to reach this. Considering the Q3 margin development, we take a cautious stance. We lower our 2024–2025 EPS estimates by an average of 8.5% as we have a conservative view of the margin improvements from the efficiency measures taken during 2023.

Still positive on the share

Based on our recent estimate changes, we adjust our fair value marginally to SEK 340–360 (370–380). We believe BTS has a long history of delivering solid profit growth and we expect it to navigate the current market turbulence with higher margins than historically thanks to its efficiency measures, but we are cautious about the effect of these improvements on our estimates until we see a change for the better. In conclusion, we believe the current valuation and share price represent a good entry point given that BTS tends to come our stronger from periods of uncertainty.

 

Download (EN)
2023-08-21 Growth below our year end estimate but solid profitability in the quarter Show Close
2023-06-21 Less conversation more action Show Close
2023-05-15 A challenging start to the year Show Close
2023-02-28 FX tailwind continued in the quarter Show Close
2022-11-14 FY guidance retained Show Close
2022-08-22 Beats every estimate and boosts forecasts Show Close
2022-05-17 Impressive growth Show Close
2022-04-13 Stronger than ever with a new CEO Show Close
2022-03-02 Stability in uncertain times Show Close
2021-08-19 Record quarter and improved outlook Show Close
2021-05-20 Strong profitability Show Close
2021-02-26 Resumed guidance provides upside potential in estimates Show Close
2020-08-19 Maintaining cost base in order to face pent up demand Show Close

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