Generic: 2024 outlook still looks solid - ABG

12% organic sales growth y-o-y
Opex increase and IAC affect Q4
Profitability assumptions down on slightly higher opex


Q4: Sales growth of 12%, adj. EBIT margin of 19% (21.5%)

Generic reported Q4 numbers were slightly behind our expectations. Net sales were SEK 38.6m (+12% y-o-y, all organic), and EBIT was SEK 6.5m (7.4m). Both sales and EBIT were affected by IAC in the Minicall business, where Generic had to adjust billings in earlier quarters after a review. Adjusted for that, sales growth was 15% y-o-y and adj. EBIT was SEK 7.3m. Reported sales were 2% below ABGSCe (adj. sales in line) and adj. EBIT was 8% below. The deviation on EBIT was driven by slightly higher COGS and opex. The deal with Inera was launched with smaller volumes towards the end of Q4 and will gradually ramp up during H1'24 and, in conjunction with solid intake of new customer agreements in Q4, we think this sets up Generic for an exciting year. The proposed dividend was SEK 1.50 (1.25).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2024/2/generic---2024-outlook-still-looks-solid/