Boule Diagnostics: Strong earnings beat, but negative product news - ABG

43% beat on EBIT
Expected launch of new product delayed
EBIT '24e expected to be revised up 7-10%


Q1 results

Net sales came at SEK 147.8m (-1% vs. ABGSCe 149.2m) but with organic growth of +5.4%, compared to ABGSCe at +4.3%. Q1 EBIT of SEK 15.4m (+43% vs. ABGSCe 10.7m) and includes a charge of SEK 3.7m related to the change of CEO (we had SEK 3m included in adm). The gross margin was 46.2% (ABGSCe 43.5%). The beat on EBIT driven by higher gross margin and lower opex as reported sales came in 1% below. The main positive deviation on sales was related to higher sales of instruments and other, at the same time as consumables came in below expectations. On a regional basis the US was weak (19% below exp.), but Eastern Europe and Latin America did well. With regards to the upcoming launch of the 5-part system, FDA has requested more extensive test samples than what the company had initially planned for, which will result in a delayed launch. In the Q4 '23 report management expected to submit to the regulators during H2 2024 and sales to start in 2025, but now management is talking about sales to start in 2026.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/boule-diagnostics/Equity-research/2024/5/boule-diagnostics---strong-earnings-beat-but-negative-product-news/