First impression HANZA, Q2 2022: Impressive Other markets

This morning, HANZA reported its Q2 2022 earnings. Below are our first impressions of the report.

• HANZA had already provided some guidance on Q2 sales and EBITA in the positive preannouncement on June 20. However, we believe the strong growth in sales and earnings of 40 and 42 per cent, respectively, topped updated expectations. Organic growth improved from the previous quarter and was 29 per cent.
• EBITA rose to SEK 57m (40) which was 25 per cent higher than our estimate (as well as consensus) prior to the preannouncement. As we explained in our comment last month, the main factor behind the earnings beat was the Other markets segment. Sales exceeded our estimates and margins in the segment bounced back from the cost headwinds experienced in recent quarters and improved from last year’s level.
• HANZA says the order book is at a record high and that no slowdown is in sight. The lack of components still hampers growth and profitability but there are signs of improvement.

In the table below we compare the final Q2, 2022 reported sales and earnings vs our estimates before the preannouncement.

At a first glance, we believe the earnings report strongly support our initial assessment from June 21 and we expect to raise our FY22 EBITA forecast by at least five percent. As previously commented, we will likely increase our base case accordingly.

Read our latest update on Hanza here

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