Sweden's Humble Group Q3 sales rises on strength in future snacking and quality nutrition segments

Overview

• Sweden FMCG group's Q3 net sales grew 5%, driven by 4% organic growth

• Q3 EBITA rose to MSEK 141 from MSEK 77, with adjusted EBITA up 29%

• Company divested Fancystage and Kryddhuset as part of ongoing strategic review

Outlook

• Company did not provide specific financial guidance for the current or coming quarters in its press release

Result Drivers

• SEGMENT PERFORMANCE - Organic growth in Future Snacking and Quality Nutrition segments contributed to sales and margin expansion

• MARGIN IMPROVEMENT - Adjusted EBITA margin rose to 7.5% from 6.1%, attributed to pricing, procurement and cost discipline, per CEO Anders Fredriksson

• WORKING CAPITAL CHALLENGES - Increased capital tied up in working capital held back cash flow and leverage improvement, per CEO

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy."

• Wall Street's median 12-month price target for Humble Group AB is SEK6.90, about 34.2% above its October 20 closing price of SEK5.14

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)