Inission: Impressive improvements to profitability - ABG

Sales +9% and adj. EBITA +58% vs. ABGSCe
Margin expansion in both segments: Inission 8.9%, Enedo 4.6%
Outlook for '23 strengthened further by strong Q1 results


Q1 results

Sales came in at SEK 565m (+9% vs. ABGSC 517m), +72% y-o-y (+27% organic). EBITA was 45m (+58% vs. ABGSC 28m), and adj. EBITA was 45m (+58% vs. ABGSC 28m) for a margin of +8% (ABGSC +5%). Adj. net income was 29m (+90% vs. ABGSC 15m) for a margin of +5% (ABGSC +3%). The company produced lease adj. FCF of 0m (0m). Inission grew 33% organically and Enedo 16%. EBITA margin increased by 2.5pp to 8.9% in Inission y-o-y, and reached 4.6% in Enedo. Management states that demand remains excellent, that the majority of Inissions factories are running at capacity, and that they are investing to increase said capacity. FCF suffered mainly from receivables build-up, but also some inventory build-up.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/inission/Equity-research/2023/5/inission---impressive-improvements-to-profitability/