Generic: Ends 2024 in style - ABG

24% organic sales growth y-o-y
Improved gross margin due to pricing and mix
Opex flat y-o-y leads to 48% EBIT growth


Q4: Sales growth of 24%, EBIT margin of 22.7% (19.0%)

Generic continued its impressive comeback in Q4, where H1'24 profitability issues appear to have been overcome in H2'24. Sales growth in Q4 remained strong at 24% y-o-y (all organic), the gross margin improved 230bp q-o-q to 43.8% due to pricing and a higher proportion of SaaS revenues, and opex was flat y-o-y. This resulted in sales of SEK 48m (SEK 39m) and EBIT of SEK 10.9m (SEK 7.3m), which was in line with ABGSCe on sales but 23% better on EBIT. The majority of the deviation was driven by higher gross margin and the rest was from lower opex than we expected. Cash flow improved 12% y-o-y and the board proposed an improved dividend of SEK 1.60 (1.50)

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2025/2/generic---ends-2024-in-style/