The Q2 earnings season has begun. Plejd delivered a quarter that, for a change, was a disappointment relative to market expectations: the share price reaction was approximately -10.7%.
- Revenue 275 MSEK (+30% y/y, but -11% q/q)
- EBIT 62 MSEK (+30% y/y, but -42% q/q)
CEO:
We see a second quarter that balances out a very strong first quarter. The high inventory build-up among wholesalers, which characterized the start of the year, has gradually evened out during the second quarter and is now at a more normal level for the season.
[…]
The ramp-up of [LPN-01] production has been more challenging than for other products, mainly as a result of the product’s complexity and size, but we expect to be able to produce in line with demand during the second half of the year.
[…]
Growth in installations slowed somewhat during the second quarter, which is expected and is mainly explained by developments in Norway. We are facing a strong comparison quarter, as the successful launch of TRM-01 in the previous year clearly contributed to growth.
I appreciate this way of communicating. They aren’t just hyping up selected figures that look good. I would like to see something similar from, for example, Kempower.
Of the most important markets, growth is currently strongest in the Netherlands and Finland. Revenue in Sweden clearly returned to being higher than in Norway.
Redeye initial take:
Redeye comments on Plejd’s Q2 report, which showed net sales of SEK274.6m, up 30.3% y/y but around 3% below our estimate. Sweden outperformed and gross margin expanded 290bps y/y, but higher than expected OPEX, driven largely by other external costs and ramp-up costs tied to the new LED panel LPN-01, left EBIT margin flat y/y and EBIT 19% below our estimate. We view the softer margin outcome as reflecting accelerated investment ahead of future launches rather than a deterioration in the underlying business, and expect only minor downward revisions to our estimates while keeping our Base Case broadly unchanged.