Generic: Solid Q3, softer outlook for '24e - ABG

15% organic sales growth y-o-y
Inera volumes slightly delayed
Minimal changes to long-term estimates


Q3: Sales growth of 15%, EBIT margin of 22.6% (22.2%)

Generic reported solid Q3 numbers with net sales of SEK 34.7m (+15% y-o-y, all organic), as the gradual sales recovery throughout 2023 continued after the slower start in Q1. EBIT of SEK 7.8m (6.7m) grew 16% y-o-y as we now saw some opex growth, as was not the case in H1. We think the company will continue to expand its opex short-term and that we should see limited scalability in the coming quarters. Long-term however, we think that the deal with Inera will enhance profitability further, similar to the situation when Generic brought in Försäkringskassan as a customer in 2021. The EBIT margin expanded 2.5pp that year, although we are a bit more cautious on what the Inera deal can bring, and forecast a 1.4 p.p. uplift between '24e and '25e.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2023/11/generic---solid-q3-softer-outlook-for-24e/