Boule Diagnostics: Analyst - ABG

4.3% organic sales growth
Improved cash flow generation
Near-term uncertainty, but long-term potential unchanged


Improved sales growth, but lower gross margin

Boule Diagnostic returned to positive organic growth in Q3 after four consecutive quarters with declining organic sales growth. In Q3, the company reported +4.3% organic sales growth (ABGSCe +11.3%), driven by strong Instrument sales and OEM consumables. Management highlighted sales of 5-part instruments to Asia and Latin America as growth drivers in Q3. On the flip side, this had a negative impact on the gross margin, as Boule Diagnostics is not selling its own 5-part instrument yet (expected launch in 2024). In total, Bould Diagnostics reported Q3 EBIT of SEK 7.9m (ABGSCe SEK 10.3m) for a margin of 5.7% (ABGSCe 7.3%), due to lower sales and gross margin as opex in Q3 came in 3% better than expected. On the positive side, cash flow generation improved in Q3 with OCF of SEK 27.8m (vs SEK -15.8m in Q3 '22), helped by improved working capital.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/boule-diagnostics/Equity-research/2023/11/boule-diagnostics---analyst/