Invisio: ABGSC’s Investor Days feedback - ABG

Military exposure to pay off from raised budgets
Delayed deliveries hurting sales short-term…
…but order book and order intake at ATH is promising

Military exposure should benefit from increased budgets
Today, we hosted CEO Lars Højgård Hansen at ABGSC’s Investor Days, talking about its communication and hearing protection solutions for extreme situations, like military activities. The company has seen a good start to 2022 with order intake really taking off in Q1, and not as a direct effect of the increased global political and military uncertainties. Invisio continued to invest in its organisation and product development during the pandemic, but as order processes have been delayed and deliveries affected slower sales growth, earnings became unsatisfactory in 2021. Now, with increased spending on military budgets and especially number of soldiers, demand for Invisio’s hearing protection products should increase accordingly. Penetration remains low and Invisio has a strong market position and long relationships with the largest military organisations, that should pay off in future growth.

Order book and order intake signaling growth ahead
The all-time high order intake and order book in Q1 will result in increased deliveries from 2023-25 and show that the activity in the market has taken off again. Invisio is now present on a large number of trade shows and sales reps have started to visit customers physically to a larger extent just recently. Even though this drives costs near-term, it creates a foundation for growth mid-term and we expect to see continued order announcements as a result during 2022.

Deliveries could be under pressure short-term
The company reiterated the view from the Q1 report, that global supply chains and component shortages to some extent affects deliveries negatively short-term. The visibility is low when we will see clear improvements, but we got the impression that we should see the challenges remaining during Q2 and at the beginning of ...
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