Generic: Sales growth re-established above 10% - ABG

Finding a new level of growth post COVID-19
Impressive profitability in Q4
Low churn confirmed, as expected


Q4: Sales growth of 12% and an EBIT margin of 21.5%

Generic reported solid Q4 results with net sales of SEK 34.2m (+12% y-o-y). Growth picked up a bit more compared to Q3 (+11% y-o-y) as the company is finding a new plateau after the deal with The Swedish Social Insurance Office and COVID-19 boosted 2021. Sales were in line with ABGSCe but profitability clearly higher. EBIT was SEK 7.4m (5.1m) for a margin of 21.5% (16.8%). EBIT was 25% above ABGSCe, partly thanks to a higher gross margin but mainly due to lower personnel costs. The board proposed a dividend SEK 1.25 (1.00) per share.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2023/2/generic---sales-growth-re-established-above-10/