OrganoClick: Cash flow improved, GCM weaker - ABG

Adj. EBIT SEK -9.7m vs. ABGSCe -7.1m
NWT sales at SEK 5.5m vs. ABGSCe 7.0m
Cash position of SEK 15m (+2m vs. Q3)


Q4 results

Sales were SEK 21.6m (-8% vs. ABGSCe 23.5m), up 21% y-o-y. NWT saw strong growth to SEK 5.5m (0.8m), which while below our estimate of 7.0m still shows a clear ramp-up. However, GCM came in weaker than expected, with slowing consumer demand now also affecting Organotex sales. The outsourcing of Baux in the Biocomposites came with a restructuring NRI of SEK 10m, resulting in a reported EBIT of SEK -19.7m, but an adj. EBIT of SEK -9.7m (ABGSCe -7.1m), an improvement from SEK -11.8m in Q4'21. The cash flow improved thanks to an NWC cash effect of +6.5m, resulting in a OCF of SEK 6.8m (-11.8m). The year-end cash position of SEK 15m still does not leave too much breathing room, but we find the improvement from Q3 somewhat reassuring.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/2/organoclick---cash-flow-improved-gcm-weaker-/