Cavotec: Strong growth, break-even margins - ABG

45% organic sales, 1% EBIT margin (ABGSCe neg.)
Guides for a "steady improvement" in margins for 2023
A positive start to the year


Q1 details

Better on orders, sales and earnings. The order backlog grew 20% y-o-y and 2% q-o-q to EUR 150m (+2% vs. ABGSCe 147m). Revenues grew 45% y-o-y organically (ABGSCe 42%) to EUR 39.5m (+5% vs. ABGSCe 37.8m) as Ports & Maritime grew 91% y-o-y organically (ABGSCe 71%) while Industry delivered stable growth (+7% organically). EBIT reached EUR 0.3m (ABGSCe -2.7m), for a margin of 0.8% (ABGSCe neg.). Net debt decreased from EUR 30m to 19m, supported by the SEK 165m rights issue, while lease adj. FCF amounted to EUR -3m. Looking ahead, the CEO believes that efficiency improvements, higher volumes and raised prices should lead to a "steady improvement in profitability during the year" (we have 2% margins in Q2, when then rise to 6-10% in H2'23).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2023/4/cavotec---strong-growth-break-even-margins/