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Revenues SEK 548.1m, +2.3% y-o-y and 7.7% above ARCe EBITDA holds up well despite lower state support q-o-q Demand better than we expected, move to e-commerce Financial position remains strong, low leverage and good liquidity
Companies: DistIT AB
Arctic Securities
Q2 sales were down -5.1% y-o-y, but still better than ARCe which indicated a -10.1% sales drop. Profitability is holding up well thanks to a combination of mitigation activities and state support. While challenges remain and DistIt’s margins were thin to begin with, we find comfort in the stable financial position supported by adequate liquidity and available undrawn credit. The bonds were already trading tight before the report - we remain market perform.
Revenue of SEK 505.4m, -5.1% y-o-y but stronger than ARCe of -10.5% EBITDA holds up well thanks to mitigating measures Improving credit metrics, but challenges are not over Strong financial position, SEK 52.5m cash and SEK 102.3m undrawn credit
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Sales held up well in Q1 given the uncertain situation, with a 1.7% increase y-o-y. Nonetheless, the real test is yet to come as DistIT expects lower demand in Q2 and Q3. We revise down our 2020e sales, implying a -6.4% top line development y-o-y. The previously anticipated EBITDA margin expansion will have to wait, as we believe this year will mark a trough. DistIT’s financial position is stable, supported by SEK 148m in cash and undrawn credit facilities
Revenues up 1.7% y-o-y, EBITDA improvement below expectations Supply chain disruptions under control, expects lower demand in Q2 and Q3 DistIT is working to adapt sale channels and product mix, reduce costs Financial position is stable, liquidity supported by available credit facilities
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