Sweden's Alligo Q3 revenue rises amid cautious market

By Reuters News


Overview

  • Sweden-based workwear and tools supplier's Q3 revenue grew 4.9%, with organic growth of 1.1%

  • Adjusted EBITA for Q3 rose to SEK 168 mln, margin improved to 7.3%

  • Company says profit improved despite a cautious market


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release

  • Company says market remains somewhat cautious entering the next quarter

  • Company expects updated strategy to support long-term profitable growth


Result Drivers

  • CAUTIOUS MARKET - Co said market conditions were cautious during Q3, impacting organic growth

  • SALES MANAGEMENT - Co said ongoing improvements to sales management and prioritisation contributed to results

  • STRATEGY DEVELOPMENT - CEO said further development of strategy aims to improve customer relevance and support long-term growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

SEK 2.30 bln

SEK 2.33 bln (2 Analysts)

Q3 Gross Margin

41.10%

Q3 Adjusted EBITA

SEK 168 mln

Q3 Adjusted EBITA Margin

7.30%

Q3 EBIT

SEK 147 mln

Q3 EBIT Margin

6.40%

Q3 Organic Growth

1.10%


Analyst Coverage

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

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Alligo AB is SEK181.50, about 45.4% above its October 22 closing price of SEK124.80

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 23 - Sweden's Bufab Q3 sales rise 16.6% on market share gains

  • Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

  • Oct 22 - MSC Industrial Q4 sales slightly beat on core customer growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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