Generic: Strong quarter and outlook - ABG

24% organic sales growth y-o-y
Improved gross margin due to price adjustments
Opex growth to abate in the coming quarters


Q3: Sales growth of 24%, EBIT margin of 20.6% (22.6%)

In our view, Generic's Q3 results were impressive. Sales growth remained strong at 24% y-o-y (all organic), the gross margin improved 130bp q-o-q to 41.5% and opex growth y-o-y was 15% (down from 21% in Q2). This resulted in sales of SEK 43m (35m) and EBIT of SEK 8.8m (7.8m), which was 1% above ABGSCe on sales and 11% on EBIT, as the gross margin was higher and opex lower than we anticipated. The improved gross margin q-o-q was a result of price hikes and a higher proportion of revenues from the company's Saas offering. Furthermore, management does not see any need for additional hirings in the short- to medium-term.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/generic/Equity-research/2024/11/generic---strong-quarter-and-outlook/