OrganoClick: Stabilised by improving cost control and NWC - ABG

Sales -10% vs. ABGSCe, but EBIT in line at SEK 0m
New customer signings in NW&FT and GC&MP to grow sales
Liquidity of SEK 18.1m vs. R12m lease adj. FCF of SEK -10.1m


Q1 results

Sales came in at SEK 38m (-10% vs. ABGSC 43m), -12% y-o-y (-12% organic), with Functional Wood being the main under performer. EBIT was 0m (vs. ABGSC 0m), and adj. EBIT was 0m (vs. ABGSC 0m) for a margin of +0% (ABGSC +0%). Adj. net income was -2m (+3% vs. ABGSC -2m) for a margin of -4% (ABGSC -4%). While the company missed our estimates on sales, the results were in line as it managed to produce a somewhat higher gross margin thanks to an improving sales mix and control opex better than we expected. The company produced lease adj. FCF of -12m, +36% y-o-y, and ended the quarter with total liquidity of 18.1m vs. R12m FCF -10.1m, thanks to a new credit of SEK 10m granted in the quarter. Cash flow was better than we anticipated thanks to less NWC build-up, possibly related to the weakness in the Functional Wood segment. In our opinion, these results put the company in a much improved liquidity position vs. a quarter ago.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2024/4/organoclick---stabilised-by-improving-cost-control-and-nwc/