OrganoClick: Better than expected, comps ease from here - ABG

GC&MP outperforms, NW&FT takes a breather, FW lags behind
Sales decline, but EBIT and cash flow better than expected
Liquidity stabilised, new customers and cost control bode well


Q1: declining sales vs. tough comps, but EBIT flat y-o-y

Q1 sales were down 12% y-o-y, coming in at SEK 38m. NW&FT was down 29% vs. very tough comps due to the Duni-lauch effect in the comparison period, and a weak restaurant market, while FW was down 23% due to weak construction and consumer markets. Comps for both of these segments get easier from here. The bright spot in revenue was GC&MP, which grew 30%, driven by strong new customer sales. EBIT developed more positively than sales by remaining flat y-o-y, as the company improved its gross margin thanks to a trend towards a more favourable sales mix, and good opex control. Cash flow was also good thanks too less NWC build-up than feared, and the company finished the quarter with total liquidity of SEK 18.1m vs. R12m lease adj. FCF of SEK -10.1m, boosted by a new SEK 10m credit.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2024/4/organoclick---better-than-expected-comps-ease-from-here/