Midsona: The gross margin is back with a vengeance - ABG

Sales +1% vs. ABGSCe
Adj. EBITDA +10% vs. ABGSCe
Back to normalised gross margin levels


Q1'23 report

The report came in line with our sales expectations and above our earnings estimates. Sales grew by 0.2% y-o-y (-3.4% org y-o-y) to SEK 974m, +1% vs. ABGSCe SEK 969m. Adj. EBITDA came in at SEK 60m (+10% vs. ABGSCe 55m). We are positively surprised by both the 26.3% gross margin, driven by successful price increases, and the cash flow from operations of SEK 82m (vs. ABGSCe -35m), driven mostly by NWC effects. Regardless of the NWC effect, we perceive the operating cash flow as strong.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/midsona/Equity-research/2023/4/midsona---the-gross-margin-is-back-with-a-vengeance/