Freemelt: Revenue lower on later delivery than expected - ABG

Sales SEK 2.4m vs. cons. 13m due to incomplete eMELT-iD delivery
EBIT adj. SEK -13m vs. cons. -5m, expenses relating to e-MELT
Positive on partnerships and feasibility studies resulting in sales


Q2 results

Sales came in at SEK 2.4m (-82% vs. ABGSCe 14m, -82% vs. cons. 13m), -56% y-o-y. The lower than anticipated sales were due to the expected eMELT-iD delivery not being completed in the quarter. Furthermore, the Freemelt ONE machine delivered to Mid Sweden University as part of the three-way collaboration with Sandvik, seems to have fetched less revenue than expected. EBIT was SEK -27m (+51% vs. ABGSCe -18m), for a margin of -1110% (ABGSCe -130%). EBIT adj. was SEK -13m (+129% vs. ABGSCe -5.8m, +165% vs. cons. -5.1m), for a margin of -556% (ABGSCe -43%, cons. -38%), where the adjustment pertains to regular goodwill amortisation. Operating expenses in the quarter were somewhat higher than anticipated as the company continued to incur expenses related to the e-MELT development project, and hired new commercial resources. EPS adj. came in at SEK -0.21 (+119% vs. ABGSCe -0.10), -7.6% y-o-y. FCF lease adj. came in at SEK -22m (+15% vs. ABGSCe -19m), +37% y-o-y.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Freemelt/Equity-research/2024/8/freemelt---revenue-lower-on-later-delivery-than-expected/