Ecoclime: Adapting in a challenging market - ABG

Q3e sales SEK 61m, up 25% y-o-y, adj. EBITDA SEK -0.6m (-5.0m)
Q3 seasonal low, working towards profitable growth, but tough macro
Targeting tenants' associations to navigate weak construction market


Q3e: The seasonal low-point

In Q3, we expect sales of SEK 61m, up 25% y-o-y, but down from SEK 91m q-o-q, as Q3 is a seasonally slower quarter due to the summer holidays. We estimate EBITDA of SEK -7.6m (-10.9m), for a margin of -12% (-22%), and company adj. EBITDA of SEK -0.6m (-5.0m), for a margin of -1% (-10%). We expect this to convert into SEK -12.6m (-35.8m) in net income, i.e. a margin of -21% (-73%). While Q2 showed positive signs with regard to cost-cutting measures taken by the new CEO, we do not expect profitability on the EBITDA level in Q3 due to the predicted seasonal revenue drop.

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