Midsona: A return to normalcy - ABG

We raise '23e-'25e EBITA by ~3%
Strong cash flow in Q1'23
Discussed discontinuation of unprofitable brands


Takeaways from the report and conf. call

Q1'23 was in line with our sales estimates, somewhat above on our EBITDA estimates, and exceptionally strong with respect to operating cash flow (82m reported vs. ABGSCe -35m). Price increases have been well-received and have contributed significantly to the normalisation of the company's gross margin. The company still faced some production-related issues during Q1, but these issues have now been remedied. Management highlighted that it is currently reviewing the company's broad product portfolio in order to potentially discontinue products and brands that are not sufficiently profitable and are potentially inefficient from a net working capital perspective.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2023/4/midsona---a-return-to-normalcy/