Midsona: Soft Q3 with rights issue announced - ABG

Sales -6% vs. ABGSCe


Adj. EBITDA -32% vs. ABGSCe


SEK 600m rights issue


Q3 report

Midsona’s Q3 results were rather soft, due to a combination of weaker demand for the company’s brands and ecological offering, negative FX effects as well as further cost inflation. Sales grew by 6% y-o-y (-1% org y-o-y) to SEK 944m, 6% below our expectations of SEK 1,006m. Adj. EBITDA also came in below expectations at SEK 50m (-32% vs. ABGSC SEK 73m). We expected that certain price increases would come into effect in Q3, but demand was weaker than we anticipated and the relatively well performing private label sales only partially offset the negative effects. The company has also written down fixed assets by SEK 54m due to lower capacity utilization as well as goodwill by SEK 421m in the North Europe and South Europe segments.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2022/10/midsona---soft-q3-with-rights-issue-announced/