OrganoClick: Growing in the right segment - ABG

Sales +12% and adj. EBIT SEK +2m vs. ABGSCe
Sales beat due to the fast-growing Nonwoven & F.T. segment
Cash balance of SEK 9.7m vs. R12m FCF of SEK -13.7m


Q3 results

Sales came in at SEK 33m (+12% vs. ABGSC 30m), +50% y-o-y (+50% organic). EBIT was -3m (+35% vs. ABGSC -4m), and adj. EBIT was -2m (+60% vs. ABGSC -4m) for a margin of -5% (ABGSC -14%). Adj. net income was -3m (+47% vs. ABGSC -6m) for a margin of -9% (ABGSC -19%). The company produced lease adj. FCF of 0m, +88% y-o-y, and ended the quarter with a cash balance of 9.7m vs. R12m FCF -13.7m. The sales beat was due to stronger than expected growth in the Nonwoven & Fiber Technologies segment, which is what we want to see.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/11/organoclick---growing-in-the-right-segment/