First impression HANZA, Q4 2022: No slowdown
14 feb 2023
Equity Research HANZA
This morning, HANZA reported its Q4 2022 earnings. Below are our first impressions of the report.
- HANZA reports an acceleration in organic growth to 29 percent from 26 per cent in the previous quarter. This was well above our estimate of 16 per cent.
- This time, the main positive deviation in our view is in the Main Markets segment with 27 percent organic growth. It is an encouraging sign against the back of e.g., the expansion into the German market in recent years.
- EBITA rose to SEK 63m (43) which was about ten per cent better than our estimate. The margin was only slightly below our expectations (see below). The negative deviation is likely explained by a higher effect from reinvoicing of rising material and energy costs than we had anticipated.
- HANZA says order intake is still very good on all markets. However, cash flow from operations declined to SEK 20m (60) from continued high levels of working capital and strong sales growth. The board has proposed a dividend of SEK 0.75 per share (0.50), in line with our expectations.
- The strong growth and outlook will likely entail a positive revision of our sales and earnings estimates.
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