Midsona Q4'23: Exceptionally strong cash flow - ABG

Sales +4% and adj. EBITDA -9% vs. ABGSCe
Operating cash flow SEK 157m, vs ABGSCe SEK -1m
Expects continued divestments of non-strategic brands


Q4'23 report

The Q4 report came in above our sales but slightly below our earnings expectations. Sales declined by 2% y-o-y (of which -4% org. decline y-o-y) to SEK 1,003m, +4% vs. ABGSCe SEK 965m. Adj. EBITDA came in at SEK 60m (-9% vs. ABGSCe 66m). The adj. gross margin of 25.4% was in line with our estimated 25.5% thanks to price increases and divestments of non-strategic brands. Cash flow from operations of SEK 157m (vs. ABGSCe -1m) was exceptionally strong and was driven to a large degree by an additional working capital release of nearly SEK 100m, which we did not expect.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2024/2/midsona---q423-exceptionally-strong-cash-flow/