DNB Markets - Nelly: Profitability from Q2e
Nelly reported Q4 sales 1% above our forecast but EBIT SEK2m below. However, we are more optimistic about the sales growth and EBIT margin trend following upbeat management comments on the near-term outlook. As a result, we have raised our fair value to SEK35–45/share (SEK30–40).Q4 results. Sales of SEK407m (1.2% above our forecast of SEK402m) were driven by 9% growth in the core Nordic operations, in part due to more customers. Gross profit of SEK177m (1% below our forecast of SEK179m) was affected by cost inflation and supply-chain disruptions. Nelly reported a gross margin of 43.4% (