No Slowdown For Our Largest Holding
Remarkably stable performance on a three-year stack basis
After the Lifco AB results yesterday, it’s time to dig deeper into the sales update of our largest holding.
Q1 2024 Results Lifco AB
Today, Lifco AB reported its Q1 2024 financial results. Let’s review them in great detail to see whether our investment case has changed meaningfully. At the time of writing, the stock is down by close to 2.5% (after being down as much as 9.6% at market open). Clearly, there is significant volatility in today’s price action.
Before we do that, it’s worth mentioning the weak performance for Indutrade (16% decrease in total EBITA excl. one-offs) which is another indication of more broad-based challenges for some of the European industrial serial acquirers.
Still, when putting all past quarters together (profitability, cash flow, M&A pipeline and diversity), we maintain our view that Lifco is likely to remain the best-in-class Scandinavian serial acquirer for the next couple quarters and multiple years. Its latest quarterly report is a testament to navigating today’s challenges well, as the Dental segment (and to a lesser extent Systems Solutions) would act as a sizable cushion if things were to go south even more. For more context on the Lifco model, please go to our summary of the Redeye event.