Sdiptech (SDIP) Q3 2021 earnings summary

Executive summary

• Q3 EBITA* rose 28.6% YoY, with an 18.4% margin; YTD EBITA* increased 44.4%, supported mainly by acquisitions.

• Organic sales growth was 8.4% YTD Q3; organic profit growth for Jan 2020–Sep 2021 averaged ~7%, within the 5–10% financial goal.

Financial highlights

• YTD Q3 net sales were SEK 1,969.8m vs SEK 1,483.7m; LTM Sep sales were SEK 2,574.1m vs SEK 2,088.0m.

• YTD Q3 EBITA* was SEK 355.9m vs SEK 246.4m; LTM Sep EBITA* was SEK 456.8m vs SEK 347.3m.

• YTD Q3 EBIT was SEK 281.7m vs SEK 233.4m; net profit was SEK 199.9m vs SEK 177.3m.

Outlook and guidance

• FY 2021 EBITA* margin guidance was 19–20%, compared with 17% in the prior-year reference.

• Organic sales growth was ~6% and organic profit growth ~7% from Jan 2020 to Sep 2021, in line with the 5–10% goals.

• Underlying customer demand and profitability were described as continuing to improve, with profitability growth driven by acquisitions.