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VBG Group Q3 sales rise on positive market performance, price adjustments

By Reuters News


Overview

  • Sweden engineering group's Q3 sales rose 5.8% with organic growth in all divisions

  • Q3 operating profit declined, impacted by reorganization expenses in Mobile Thermal Solutions

  • Sales growth driven by positive market performance and price adjustments


Outlook

  • Company says business environment remains uncertain due to geopolitical and macroeconomic factors

  • Company notes stable demand with order bookings up 4.5% in the latest quarter

  • VBG Group focusing on price adjustments, cost control and operational improvements to address cost pressures


Result Drivers

  • PRICE ADJUSTMENTS - Co said price adjustments contributed to sales growth across divisions

  • BROAD-BASED GROWTH - Co reported organic growth in all divisions and geographic markets

  • REORGANIZATION COSTS - Workforce-related reorganization expenses in Mobile Thermal Solutions negatively impacted operating profit


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

SEK 1.45 bln

SEK 1.42 bln (1 Analyst)

Q3 Operating Income

SEK 139.60 mln

Q3 Organic Growth

5.40%


Analyst Coverage

  • The current average analyst rating on the shares is "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 consumer goods conglomerates peer group is "buy"

  • Wall Street's median 12-month price target for VBG Group AB (publ) is SEK415.00, about 33% above its October 26 closing price of SEK312.00

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Oct 27 - Sweden's Assa Abloy slightly beats Q3 sales estimates on strength in Americas and EMEIA divisions

  • Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake

  • Oct 27 - Sweden's Hanza Q3 net sales jump, helped by acquisitions


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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