Midsona: Restructuring efforts starting to bear fruit - ABG

We raise '23e-'25e adj. EBITA by 9-2%
Expect further discontinuations
Trading at '23e-'24e EV/EBITA of ~14x-7x


Takeaways from the report and the conf. call

The Q3'23 numbers beat our estimates on both sales (+2% vs. ABGSCe) and adj. EBITDA (+16% vs. ABGSCe), as the company has successfully weeded out a first, large batch of unattractive and margin-dilutive SKUs and raised prices. The adj. gross margin of 25.7% was in line with our expectations and should head in the right direction as the company continues to right-size the organisation's offering. The company's working capital management efforts have also benefitted the company's cash flow and unoptimised inventories are now seemingly a problem of the past.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2023/10/midsona---restructuring-efforts-starting-to-bear-fruit/