<a id="bm-comp-62dc7cdd-d604-4183-9e62-92cc8ce10892" name="bm-comp-62dc7cdd-d604-4183-9e62-92cc8ce10892" class="BMCustomAnchor"></a><table><tr><td bm-component-id="62dc7cdd-d604-4183-9e62-92cc8ce10892" style="vertical-align: top; width:100.000000%;"><ul><li>Sales SEK 344m -9% vs. ABGSCe 377m</li><li>EBIT adj. for FX and cyberattack ~SEK -3m vs. ABGSCe -11m</li><li>Cons. EBIT likely to come up slightly on cost beat</li></ul></td></tr></table><a id="bm-comp-6f5a3817-7b57-4a13-acc6-ee9735834315" name="bm-comp-6f5a3817-7b57-4a13-acc6-ee9735834315" class="BMCustomAnchor"></a><table><tr><td bm-component-id="6f5a3817-7b57-4a13-acc6-ee9735834315" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q3'24 results</h3><p>Q3'24 sales came in at SEK 344m (9% below ABGSCe SEK 377m). EBIT adj. for FX and the cyberattack came in at ~SEK -3m (vs. ABGSCe SEK -11m). On a segment basis, Aurdel performed in line with expectations when we consider adjusted metrics, and so did Septon. EFUEL was somewhat softer than we expected on sales but somewhat better on costs, leading to a beat on EBIT. DistIT generated operating cash flow of ~SEK 19m, driven by a working capital release of SEK ~21m.</p><h3 class="bm-h3">Thoughts and outlook</h3><p style="text-align:left;">While headwinds persist in the consumer electronics market, DistIT has shown strong cost control across all segments. Most of the topline deviation can be explained by a discontinuation of external brands. However, we expect that to result in improved gross margins going forward, with full effect in Q3'25 according to the company. EFUEL appears to have starting scaling up again, and that should offset some incremental sales losses from the right-sizing of Aurdel. Overall, we continue to deem DistIT's restructuring efforts as necessary for a sustainable return to profitability.</p><h3 class="bm-h3">Valuation and estimate revisions</h3><p>The share is down ~49% YTD, and is trading at '25e-'26e EV/EBIT of ~21-10x based on our unrevised estimates. Based on mechanical calculations following the report, we anticipate consensus to raise '24e-'26e EBIT estimates by low single digits.</p><table id="bm-img-f6ffc400-e568-4813-a933-0a003d42a3fa" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="f6ffc400-e568-4813-a933-0a003d42a3fa" bm-img-original-height="617" bm-img-original-width="787" bm-img-svg="image:image_upload/83125_5fd45662-f501-4661-8c26-4995c226671b.svg" bm-img-width-hint="100%" id="bm-id-f6ffc400-e568-4813-a933-0a003d42a3fa" src="https://abgsc.bluematrix.com/images/image_upload/83125_5fd45662-f501-4661-8c26-4995c226671b_727.png" svg="/nas/web/clients/abgsc/images/image_upload/83125_5fd45662-f501-4661-8c26-4995c226671b.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data.</td></tr></table></td></tr></table>