Midsona Q4: Gross margins are holding up - ABG

Sales -3% vs. ABGSCe
Adj. EBITDA -13% vs. ABGSCe
Solid working capital management


Q4 report

The report came in relatively well in line with our estimates on sales but somewhat below on earnings. Sales grew by 1.5% y-o-y (-3.5% org y-o-y) to SEK 1,027m, -3% vs. ABGSCe SEK 1,063m. Adj. EBITDA came in at SEK 45m (-13% vs. ABGSCe 52m). We are positively surprised by both the 22.4% gross margin, which is nearly 300bps above our estimate of 19.5%, and the cash flow from operations of SEK 128m (vs. ABGSCe 108m), driven by a significant working capital release. That said, opex was higher than expected, and partly driven by certain temporary factors in South Europe.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2023/2/midsona---q4-gross-margins-are-holding-up/