Volati Q3 net sales rise on acquisitions, platform expansion

Overview

• Sweden industrial group Volati Q3 net sales rose 12% yr/yr, driven by acquisitions

• Q3 EBITA fell 23% yr/yr

• Company completed two add-on acquisitions during the quarter

Outlook

• Company did not provide specific guidance or outlook commentary for future quarters or full year in its press release

Result Drivers

• ACQUISITIONS - Co said net sales growth was driven by acquisitions completed during the year

• UNDERLYING EARNINGS - Co reported improved underlying EBITA margin before items affecting comparability

• PLATFORM EXPANSION - Add-on acquisitions broadened offerings in label and moisture control markets

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Volati AB is SEK32.50, about 31.3% above its October 22 closing price of SEK24.75

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 23 - Sweden's Storskogen Q3 sales rise 4%, EBITA up 6%

• Oct 23 - Idun Industrial Q3 net sales rise on acquisitions

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

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.)