Midsona: Q3 beat on solid sales - ABG

Sales +2% and adj. EBITDA +16% vs. ABGSCe
Operating cash flow >100% above ABGSCe
Restructuring efforts start to bear fruit


Q3'23 report

The Q3 report came in above our sales and earnings expectations, as organic growth was slightly better than expected and as cost savings started to bear fruit. Sales declined by 2% y-o-y (of which 8% org. decline y-o-y) to SEK 923m, +2% vs. ABGSCe SEK 901m. Adj. EBITDA came in at SEK 58m (+16% vs. ABGSCe 50m). The adj. gross margin of 25.7% was in line with our estimated 25.6% thanks to price increases and and discontinuation of unprofitable products. Cash flow from operations of SEK 87m (vs. ABGSCe 42m) was stronger than expected thanks to the company's working capital management efforts.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2023/10/midsona---q3-beat-on-solid-sales/