Freemelt: Preparing for growth - ABG

Good cost control and FCF despite no orders
Sales organisation restructured to increase future sales
eMELT to be finished in '23, first deliveries expected in '24


Q1

No Freemelt ONE systems were delivered in Q1, resulting in sales of SEK 1m (10.8m). The company received an order in April, however, that is expected to be delivered in Q2 while a previous order is expected to be delivered in Q3. Management emphasises that the lengthy University funding application processes, which can take up to 24 months, mean Freemelt has limited control over order flow, and order intake is therefore unevenly distributed over time. EBIT was SEK -24.1m (-10m), and ABGSC adj. EBIT was -13.4m (-7.4m). Despite being lower than in Q1'22, this demonstrated good cost control given the SEK 10m lower revenue. FCF was SEK 0.5m (-12.5m) due to a reduction in receivables. Mgmt. highlights the work the company has done during the quarter to improve its sales organisation.

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