I-tech: Strong start with growth across six customers - ABG

Q1: sales SEK 38m, +24% y-o-y; adj. EBIT margin of 27% (27%)
Demonstrated Q4 was temporary setback, long-term potential intact
Costs associated with EU regulatory process to persist in '24


Q1: Record turnover and profit

Q1 sales were SEK 38m, up 24% y-o-y (25% org., -1% FX). EBIT was SEK 9m (8m) for a margin of 24% (27%), while EBIT adj. was 10m for a margin of 27%. Net income was SEK 8.2m (6.7m) for a margin of 21% (22%), which converted into EPS of SEK 0.69 (0.56) and lease adj. FCF of SEK 14m (11m). After a weaker fourth quarter, the company presented record-high turnover and profit in Q1. Six customers contributed to the turnover growth, with its latest customer PPG contributing 4% of total turnover in Q1, a very strong performance considering the recent launch. During the quarter, the company experienced elevated costs of SEK 1.3 million due to the EU regulatory process, leading to higher external costs of SEK -6m (-3m).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/i-tech/Equity-research/2024/5/i-tech---strong-start-with-growth-across-six-customers/