Scandi Standard AB: 1 director

A director at Scandi Standard AB bought 40,244 shares at 81.556SEK and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cl...

Steady, and steady is good

Q3: All-time high EBIT, as expected

Spreading its wings

Q3'24e EBIT of SEK 150m (Facts Set cons . SEK 151m). Recent M&A adds new dimension to the margin story. '25e-26e P/E 14x-11x: BUY , TP SEK 90 (85).

On the right track

'24e-'25e EBIT little changed as RTE recovery offsets RTC miss. Structural improvements to support continued margin expansion. '25e P/E 13x for 15% EPS CAGR and 15% ROE next 3-4 years.

Q2: EBIT 4% below, but RTE comeback is a positive

Q1: EBIT 6% above cons. We see a strong '24 margin outlook, and the DK turnaround continues positively. Expect limited changes to cons '24e EBIT, but we find the report case-supportive

Encouraging underlying margin growth

We keep our '24e-'25e EBIT largely unchanged. Margin expansion in RTC offsets prolonged RTE recovery. Positive momentum and undemanding valuation: BUY.

Q1: EBIT 6% above cons on better margins

Q1: EBIT 6% above cons. We see a strong '24 margin outlook, and the DK turnaround continues positively. Expect limited changes to cons '24e EBIT, but we find the report case-supportive

Scandi Standard (No_rec, TP: SEK) - Discontinuing coverage

We have discontinued coverage of Scandi Standard. Our last published recommendation, target price and estimates should no longer be relied upon.

Northern Lights

Scandi Standard (Buy, TP: SEK46.00) -

Scandi Standard (SCST SS, Buy) - (17 pages)

Scandi Standard (Buy, TP: SEK42.00) - Expecting continued headwinds

We expect a soft Q1 report from Scandi Standard (due at 07:30 CET on 4 May) as a result of raw material cost inflation, low realised prices in export markets, reduced bird intake in Sweden and Ireland, and continued losses in RTC Denmark, only partly offset by some price increases being passed on to customers. We reiterate our BUY, but have lowered our target price to SEK42 (46) on our negative estimate revisions.

Scandi Standard (Buy, TP: SEK46.00) - 2022 off to a bumpy start, but g...

Q4 sales were 4% above consensus, on Foodservice strength in the Ready-to-Eat segment. However, adjusted EBIT of SEK3m missed consensus, reflecting increased costs (particularly feed raw materials) and continued losses in Denmark. The company had pre-warned of a tough quarter – a trend set to continue in H1. Despite this, we find the improvement programme convincing and guidance reasonable, and expect the financial benefits to appear in H2. We reiterate our BUY and SEK46 target price.

Scandi Standard (Buy, TP: SEK46.00) - Tough times

We expect Q4 EBIT of SEK-6m (consensus: SEK38m) on headwinds from bird flu, low export prices, and tough conditions in some key markets. The company had indicated tough times ahead. However, our expectations are down further on a greater impact from bird flu in the latter part of Q4 and intensifying raw material price inflation. We reiterate our BUY, but have cut our target price to NOK46 (51). With the stock trading at a 2022–2023e P/E of 19–7x, we believe meeting the current challenges could p...

Scandi Standard (Buy, TP: SEK51.00) - Headwinds expected to last

A weak Q3 was expected given the rising raw material prices, the challenges in Ireland and Sweden, and the low export prices (previously highlighted by the company). Hence, the Q3 headline figures were in line with our expectations and consensus, with EBIT of SEK30m. The company did, however, surprise us with its guidance that these challenges would likely worsen in Q4, and that costs would increase further. Denmark remains a headache, and we struggle to see how the announced measures can addres...

Scandi Standard (Buy, TP: SEK65.00) - Q3 profit warning

Scandi Standard released a trading update yesterday in which it guided for Q3 EBIT of SEK30m (our forecast: SEK108m; consensus: SEK94m) due to continued strong inflation in raw materials prices and operational challenges over the summer in Ireland and Sweden. We have lowered our 2021–2023e EPS by 39–12% and reduced our target price to SEK65 (SEK77), but we reiterate our BUY.

Scandi Standard (Buy, TP: SEK77.00) - Set for some near-term headwinds

Scandi Standard’s reported Q2 adj. group EBIT was SEK79m, c6–5% below our estimates and consensus (Infront), owing to lower margins in the RTC segment and higher one-offs due to management changes, while the RTE segment surprised on the upside. Although Covid-19 headwinds in foodservice are starting to ease, management guided for a tough Q3. Thus, we have cut our 2021–2022e EPS by 16.2–4.2% and tweaked 2023e. We reiterate our BUY and SEK77 target price.

Scandi Standard (Buy, TP: SEK77.00) - CEO change in focus

Our Q2e adj. EBIT is below consensus (report due at 07:30 on 25 August), as we expect a still-weak Danish RTC margin, as well as a hit from the animal welfare situation in Sweden and the resignation of the CEO, Leif Bergvall Hansen. We expect the pandemic-related headwinds in the foodservice channel to continue to ease in H2, and in the Q2 presentation, we will listen for any comments from the new CEO related to a turnaround of the Danish RTC operation. We reiterate our BUY but have reduced our ...

Scandi Standard (Buy, TP: SEK80.00) - Minor model update

Ahead of the Q1 report (due at 07:30 CET on 7 May), we have adjusted our model based on a change in segment reporting structure from a geographical split to a product-category split. We have made minor changes to our estimates since our last preview, as the company also intends to implement a stricter classification of one-off costs in the future that should affect the adj. margins, and thus also adj. EPS. However, these changes do not alter the underlying results and fundamentals of the case, a...

Scandi Standard (Buy, TP: SEK80.00) - Brighter days ahead

Ahead of the Q1 report, we have made limited estimate changes. We expect continued headwinds from the spread of bird flu and Covid-19, but a strong recovery to start in Q2, with an accelerated financial performance supported by a shift in the product mix and a reopening of the Foodservice sales channel. We reiterate our BUY and SEK80 target price.