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.

Link to the analysis