Freemelt: Incremental eMELT progress - ABG

Sales -20.6%, adj. EBIT -2.6% vs. ABGSCe, improved cost control
Expects increasing demand for eMELT in '24, volume orders in '25
Strategic contract for eMELT signed with global technology company


Q3 results

Sales came in at SEK 8.2m (-21% vs. ABGSCe 10.3m, -12% vs. FactSet cons. 9.3m), +0.1m y-o-y. The lower than expected sales was likely due to invoice timings differing from our expectations. EBIT was -17.7m (+17% vs. ABGSCe -21.2m, +20% vs. cons. -22.0m), and adj. EBIT was -11.0m (-3% vs. ABGSCe -10.7m) for a margin of -135% (ABGSCe -104%). The company produced FCF of -13.0m (+16% vs. ABGSCe -15.4m, n.a. vs. cons. n.a.m), and ended the quarter with a cash balance of 47.1m vs. R12m FCF -34.0m. Despite lower than expected revenue, adj. EBIT was in line with our expectations, signalling improved cost control. In Q3, the company received two new Freemelt ONE orders, one to a research institute in Hungary, one to a Turkish university. Freemelt is continuously working towards the completion of its industrial printer eMELT, which according to the company, is progressing as envisioned.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Freemelt/Equity-research/2023/11/freemelt---incremental-emelt-progress/