Nexam Chemical: Delivering on expectations - ABG

Continued sequential growth, delivering on cost savings
Wind market improving, wind power customers' order intake +40%
Raise sales estimates +4% and EBIT SEK +5-7m, 1.1-0.8x EV/Sales


Q4: Incremental improvements

Q4 sales came in at SEK 51m, down 9% y-o-y, but continued to improve sequentially (+10%), as expected. Sales were evenly distributed between the segments, with Performance Chemicals causing the y-o-y decrease. EBIT was SEK -2.1m (-4.4m), for a margin of -4.1% (-7.9%): this figure shows improvement both y-o-y and q-o-q, as the cost savings programme continued to improve profitability. This converted into net income of SEK -3.0m (-4.5m), or EPS of SEK -0.04 (-0.06). Lease adj. FCF was SEK -4.8m (-21.8m), driven by SEK 5m in WC build-up, and the company ended the quarter with SEK 9m in cash and an unutilised credit facility of SEK 20m, resulting in total liquidity of SEK 29m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nexam-chemical/Equity-research/2024/1/nexam-chemical---delivering-on-expectations/