• Sales SEK 432m +3% vs. ABGSCe 419m
• EBIT better than expected
• Consensus EBIT estimate revisions likely positive

Q4'24 results

Q4'24 sales came in at SEK 432m (3% above ABGSCe SEK 419m). Adj. EBIT came in at SEK 3m (vs. ABGSCe SEK -2m). On a segment basis, Aurdel delivered sales below expectations, however, the EBIT was better than expected due to a larger share of own brands being sold as well as better cost control. Septon generated exceptionally strong sales but an EBIT that was in line with expectations, but that was mostly due to low margin products. EFUEL was in line with expectations on both sales and profitability. DistIT generated operating cash flow of SEK 17m, mostly driven by a working capital release of SEK 11m.

Thoughts and outlook

It is now more evident that DistIT's increased focus on its own brands and restructuring efforts start to yield results. This effect should be more pronounced when DistIT gets to invest in working capital and subsequently grow (which is likely when the Deltaco Baltic acquisition closes). We note that DistIT has written down its earn-out related to EFUEL by ~75%, meaning that the company likely expects the earn-out to be paid later than previously anticipated. Overall, the restructuring efforts are starting to bear fruit, serving as initial evidence of a successful turnaround.

Valuation and estimate revisions

The share is up ~35% YTD, and is trading at '25e-'26e EV/EBIT of ~18-9x based on our unrevised estimates. Based on mechanical calculations after the report, we anticipate consensus to raise '25e-'26e EBIT estimates by low teens.