OrganoClick: Continued growth but seasonal weakness - ABG

Q4e: sales of SEK 30m, up 37% y-o-y, adj. EBIT SEK -5m (-20m)
Turning our eyes to '24e, where we expect positive developments
Trading at 2.4-2.1x EV/Sales, fair value SEK 2-4


Q4e: Seasonally softer quarter ends a year of strong growth

For Q4e, we expect sales of SEK 30m, up 37% y-o-y (37% org., 0% FX), mainly driven by 125% growth in the NW&FT segment, but also 40% growth in the GC&MP segment. Q4e NW&FT sales are down slightly q-o-q, as the main customer Duni had already substantially finished ramping in Q3, while Q4 may see some seasonal weakness due to softer restaurant sales. From Q1'24, comps will be tougher. We estimate SEK -5m (-20m) in adj. EBIT, for a margin of -16% (-91%). We expect this will convert into an adj. EPS of SEK -0.06 (-0.21). Our lease adj. FCF estimate is SEK -7m (2m), leaving the company with a cash balance of SEK 3m, and around SEK 10m in available credit.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2024/1/organoclick---continued-growth-but-seasonal-weakness/