Inission: Strong profitability on increased efficiency - ABG

Sales +1% and adj. EBITA +28% vs. ABGSCe
Improved factory efficiency leads to higher profitability
Capacity issues solved, demand remains good


Q3 results

Sales came in at SEK 515m (+1% vs. ABGSCe 511m), +18% y-o-y (+17% organic). EBITA was 45m (+28% vs. ABGSCe 35m), and adj. EBITA was 45m (+28% vs. ABGSCe 35m) for a margin of +9% (ABGSCe +7%). Adj. net income was 28m (+35% vs. ABGSCe 21m) for a margin of +5% (ABGSCe +4%). The company produced lease adj. FCF of -20m, -114% y-o-y. The higher than expected profitability was due to the Inission segment where efficiency has improved as new personnel get used to the job, and component shortages have subsided. The poor FCF was due to earlier than expected repayment of deferred tax of SEK 119m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/inission/Equity-research/2023/11/inission---strong-profitability-on-increased-efficiency/