Midsona: Earnings miss due to terminated contracts - ABG

• Sales -8% vs. ABGSCe
• Adj. EBITDA -44% vs. ABGSCe
• Discontinuations have begun

Q2'23 report
The report came in below our sales and earnings expectations, primarily due to the termination of distribution contracts carrying a large impact. Therefore, sales declined by 7% y-o-y (of which -11% org. decline y-oy) to SEK 893m, -8% vs. ABGSCe SEK 973m. Adj. EBITDA came in at SEK 39m (-44% vs. ABGSCe 70m). The adj. gross margin of 26.4% was in line with our estimated 26.5% as the seasonal price increases were fully phased in during the quarter. As a consequence of the termination of distribution contracts, the cash flow from operations of SEK 17m (vs. ABGSCe 68m) was weaker than expected.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/5421be8343c34813943568708510bc2f/pdf/earnings-miss-due-to-terminated-contracts.pdf