Midsona: Expect continued operating improvements - ABG

Minor estimate changes
Gross margin improvements set to continue
Trading at NTM EV/EBITA of ~10x


What to expect in Q3'24e

We anticipate 1% y-o-y organic growth in Q3'24, implying sales of SEK 914m, and an adj. EBITA of SEK 40m, or a margin of 4.4%. Operating cash flow should be negative, to the tune of SEK -50m, as Midsona would need to tie up capital to grow its most popular brands and to ultimately win shelf space. We expect the hotter weather in Europe to adversely impact Midsona's sales in the third quarter, but expect further improvements in margins due to a better product mix.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2024/10/midsona---expect-continued-operating-improvements/