OrganoClick: Long-term potential boosted by new contracts - ABG

Q1'23 report on Friday, 5 May
We expect a full ramp-up to Duni & ~7.5m in sales contribution
Share is trading at 19x EV/EBITDA on '24e


Q1'23e: Full ramp-up to Duni

We expect OrganoClick to deliver Q1 sales of SEK 39.2m, up 20% y-o-y, alongside a gross profit of SEK 10.2m for a margin of 26% (25%). Moreover, we now expect a full run-rate on the Duni contract in Non-woven & Technical Textiles (NWT), i.e. SEK ~7.5m sales per quarter. We expect negative sales growth of -20% in Green Coating & Maintenance (GCM), as we expect weaker consumer sentiment to affect Organotex and Biokleen. All in all, this should result in EBIT of SEK -3.8m (-4.2m). Moreover, we foresee an improved cash position of SEK ~20m (SEK 15m in Q4'22), as we expect a positive OCF driven by NWC release. However, its '23e year-end cash position at SEK ~8m leaves little room for error.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/5/organoclick---long-term-potential-boosted-by-new-contracts-/