Boule Diagnostics: Good quarter, but disappointing delay - ABG

Solid earnings beat in Q1
Launch of new system delayed
'24e EBIT revised up 8.6%, +0.3-1.1% for '25e-'26e


Strong start to the year in Q1...

Boule Diagnostics reported a strong set of numbers in Q1 with a 43% beat on reported EBIT, but with disappointing news with regard to the launch of its new 5-part system. The earnings beat in Q1 was driven by a higher gross margin (46.2% vs ABGSCe of 43.5%) and lower opex, as reported sales came in 1% below expectations. Cash flow from operating activities improved y-o-y, but the capitalisation of R&D (new 5-part system) continues to hold back FCF generation for Boule Diagnostics. As of 31 March, the company had SEK40.9m in cash and an additional SEK 59m in credit facilities available to fund the development costs of the new 5-part system according to management.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/boule-diagnostics/Equity-research/2024/5/boule-diagnostics---good-quarter-but-disappointing-delay/