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Embellence Group

Embellence Group

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Embellence Group is a Swedish brand collective focused on premium wallpaper that is expanding into adjacent product categories (textiles, rugs, window film). It holds leading positions in Sweden and Norway, and top-3 positions in Italy and the UK. It has over 100 years of history and today consists of the brands Artscape Inc., Boråstapeter, Cole & Son, Wall & Decó, Pappelina and Perswall. The group aims to refocus on its brands after a period of M&A.

Sustainability information

Embellence uses a variety of raw materials in its production, making it subject to potential cost inflation that could hamper margins and earnings. Other risks include production-related risks, but we view this risk as fairly low given that the majority of its production is in-house. Embellence also has exchange rate exposure, primarily to GBP, EUR, NOK and USD, which could have a significant impact if large fluctuations occur.

Financials

SEKm 2023 2024e 2025e
Sales 740 769 794
Sales growth (%) 2,8 3,9 3,2
EBITDA 119 140 151
EBITDA margin (%) 16 18,3 19
EBIT adj. 73 95 102
EBIT adj. margin (%) 9,9 12,4 12,9
Pretax profit 52 79 97
EPS 1,74 2,8 3,3
EPS growth (%) -31,5 60,7 18,1
EPS adj. 1,88 2,8 3,3
DPS 0 0,8 1
EV/EBITDA (x) 7,8 5,8 4,9
EV/EBIT adj. (x) 12,6 8,6 7,2
P/E (x) 18,2 11,3 9,6
P/E adj. (x) 16,8 11,3 9,6
EV/sales (x) 1,25 1,06 0,93
FCF yield (%) 6,8 14,3 15,2
Le. adj. FCF yld. (%) 4,3 12,4 13,5
Dividend yield (%) 0 2,5 3,2
Net IB debt/EBITDA (x) 1,8 0,7 0,1
Le. adj. ND/EBITDA (x) 1,4 0,3 -0,3
SEKm 2023 2024e 2025e
Sales 740 769 794
COGS -308 -309 -316
Gross profit 433 460 478
Other operating items -314 -320 -327
EBITDA 119 140 151
Depreciation and amortisation -27 -26 -29
of which leasing depreciation -16 -13 -13
EBITA 92 115 122
EO Items -3 0 0
Impairment and PPA amortisation -22 -20 -20
EBIT 70 95 102
Net financial items -18 -16 -5
Pretax profit 52 79 97
Tax -13 -16 -22
Net profit 39 63 75
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 39 63 75
EPS 1,74 2,8 3,3
EPS adj. 1,88 2,8 3,3
Total extraordinary items after tax -3 0 0
Leasing payments -16 -13 -13
Tax rate (%) 24,1 19,9 23
Gross margin (%) 58,4 59,8 60,1
EBITDA margin (%) 16 18,3 19
EBITA margin (%) 12,4 14,9 15,4
EBIT margin (%) 9,5 12,4 12,9
Pre-tax margin (%) 7 10,3 12,2
Net margin (%) 5,3 8,2 9,4
Sales growth (%) 2,8 3,9 3,2
EBITDA growth (%) 5,5 18,4 7,5
EBITA growth (%) 4 24,6 6,6
EBIT growth (%) -1,5 35,9 7,4
Net profit growth (%) -31,5 60,7 18,1
EPS growth (%) -31,5 60,7 18,1
Profitability N/A N/A N/A
ROE (%) 9,7 13,6 13,7
ROE adj. (%) 15,8 17,7 17,3
ROCE (%) 11,5 14,4 15
ROCE adj. (%) 15,3 17,4 17,9
ROIC (%) 11,3 14,8 15,6
ROIC adj. (%) 11,7 14,8 15,6
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 122 140 151
EBITDA adj. margin (%) 16,5 18,3 19
EBITDA lease adj. 106 128 138
EBITDA lease adj. margin (%) 14,3 16,6 17,4
EBITA adj. 95 115 122
EBITA adj. margin (%) 12,9 14,9 15,4
EBIT adj. 73 95 102
EBIT adj. margin (%) 9,9 12,4 12,9
Pretax profit Adj. 77 98 117
Net profit Adj. 65 83 95
Net profit to shareholders adj. 65 83 95
Net adj. margin (%) 8,7 10,7 11,9
SEKm 2023 2024e 2025e
EBITDA 119 140 151
Goodwill 240 240 240
Net financial items -18 -16 -5
Other intangible assets 124 121 101
Paid tax -13 -16 -22
Tangible fixed assets 75 79 81
Non-cash items -8 -4 0
Right-of-use asset 55 61 60
Cash flow before change in WC 80 104 123
Total other fixed assets 3 4 4
Change in working capital -19 15 4
Fixed assets 496 505 486
Operating cash flow 61 120 127
Inventories 136 131 135
Capex tangible fixed assets -13 -17 -19
Receivables 110 112 115
Capex intangible fixed assets 0 0 0
Other current assets 22 23 24
Acquisitions and Disposals 0 0 0
Cash and liquid assets 38 35 113
Free cash flow 49 102 108
Total assets 802 805 873
Dividend paid -18 0 -18
Shareholders equity 415 517 574
Share issues and buybacks 0 0 0
Minority 0 0 0
Leasing liability amortisation -18 -14 -12
Total equity 415 517 574
Other non-cash items 16 22 0
Long-term debt 57 46 46
Pension debt 7 7 7
Convertible debt 0 0 0
Leasing liability 58 66 66
Total other long-term liabilities 17 16 16
Short-term debt 127 18 18
Accounts payable 53 46 56
Other current liabilities 68 88 91
Total liabilities and equity 802 805 873
Net IB debt 208 98 20
Net IB debt excl. pension debt 201 91 13
Net IB debt excl. leasing 150 32 -46
Capital employed 664 654 711
Capital invested 623 616 594
Working capital 147 131 127
Market cap. diluted (m) 714 714 714
Net IB debt adj. 211 102 24
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 925 816 738
Total assets turnover (%) 89,5 95,8 94,6
Working capital/sales (%) 18,5 18 16,3
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 50,1 19 3,5
Net debt / market cap (%) 29,1 13,8 2,8
Equity ratio (%) 51,7 64,3 65,7
Net IB debt adj. / equity (%) 50,9 19,8 4,2
Current ratio 1,23 1,97 2,35
EBITDA/net interest 6,5 8,6 28,1
Net IB debt/EBITDA (x) 1,8 0,7 0,1
Net IB debt/EBITDA lease adj. (x) 1,4 0,3 -0,3
Interest coverage 3,8 7 22,7
SEKm 2023 2024e 2025e
Shares outstanding adj. 23 23 23
Diluted shares adj. 23 23 23
EPS 1,74 2,8 3,3
Dividend per share 0 0,8 1
EPS adj. 1,88 2,8 3,3
BVPS 18,37 22,9 25,4
BVPS adj. 2,28 6,91 10,3
Net IB debt/share 9,34 4,53 1,07
Share price 31,6 31,6 31,6
Market cap. (m) 714 714 714
P/E (x) 18,2 11,3 9,6
EV/sales (x) 1,25 1,06 0,93
EV/EBITDA (x) 7,8 5,8 4,9
EV/EBITA (x) 10,1 7,1 6
EV/EBIT (x) 13,2 8,6 7,2
Dividend yield (%) 0 2,5 3,2
FCF yield (%) 6,8 14,3 15,2
Le. adj. FCF yld. (%) 4,3 12,4 13,5
P/BVPS (x) 1,72 1,38 1,24
P/BVPS adj. (x) 12,65 4,22 2,91
P/E adj. (x) 16,8 11,3 9,6
EV/EBITDA adj. (x) 7,6 5,8 4,9
EV/EBITA adj. (x) 9,7 7,1 6
EV/EBIT adj. (x) 12,6 8,6 7,2
EV/CE (x) 1,4 1,2 1
Investment ratios N/A N/A N/A
Capex/sales (%) 1,7 2,3 2,4
Capex/depreciation 1,2 1,3 1,2
Capex tangibles / tangible fixed assets 17 22 23
Capex intangibles / definite intangibles 0 0 0
Depreciation on intang / def. intang 0 0 0
Depreciation on tangibles / tangibles 14,23 16,52 19,57

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Media

Embellence Group - Company presentation with CEO Olle Svensk
Embellence Group - Company presentation with CEO Olle Svensk & CFO Karin Lidén

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Main shareholders - Embellence Group

Main shareholders Share capital % Voting shares % Verified
Peter Lindell 15.2 % 15.2 % 26 Sep 2024
JCE Group 12.4 % 12.4 % 26 Sep 2024
Ramhill AB 10.2 % 10.2 % 26 Sep 2024
Avanza Pension 4.9 % 4.9 % 26 Sep 2024
Henrik Nyqvist 4.6 % 4.6 % 8 Dec 2023
FE Fonder 4.5 % 4.5 % 30 Nov 2024
Erik Åfors 3.4 % 3.4 % 26 Sep 2024
T-Konsortiet AB 3.4 % 3.4 % 26 Sep 2024
Nordnet Pensionsförsäkring 3.0 % 3.0 % 26 Sep 2024
Schroders 2.4 % 2.4 % 31 Aug 2024
Source: Holdings by Modular Finance AB