Freemelt: Positive FCF despite low sales - ABG

Sales SEK +0.7m and adj. EBIT +28% vs. ABGSCe
Positive FCF due to reduction in receivables
Restructured sales organisation positive for outlook


Q1 results

Sales came in at SEK 1.0m (+272% vs. ABGSC 0.3m, +177% vs. FactSet cons. 0.4m), -9.8m y-o-y. EBIT was -24.1m (+9% vs. ABGSC -26.5m, +11% vs. cons. -27.0m), and adj. EBIT was -13.4m (+28% vs. ABGSC -18.6m) for a margin of -1377% (ABGSC -7119%). The company produced FCF of 0.5m (+104% vs. ABGSC -14.1m, +104% vs. cons. -14.1m), and ended the quarter with a cash balance of 76.3m, +72% y-o-y. The positive free cash flow in the quarter despite the low sales was due to a substantial reduction in receivables. While no orders were received in Q1, the company did receive a Freemelt ONE order in April which is expected to be delivered in Q2.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Freemelt/Equity-research/2023/5/freemelt---positive-fcf-despite-low-sales/