OrganoClick: Market headwinds force some price reductions - ABG

Sales -12% and EBIT -2m vs. ABGSCe
Weak performance in NW&FT, as market headwinds intensify
Expect continued weakness in NW&FT, gradual stabilisation in FW


Q3 results

Sales came in at SEK 29m (-12% vs. ABGSC 33m), -14% y-o-y (-14% organic). Adj. EBIT was -3m (-317% vs. ABGSC -1m) for a margin of -10% (ABGSC -2%). The company produced lease adj. FCF of -4m, and ended the quarter with a cash balance of 4.3m vs. R12m FCF -11.1m, and SEK 25m in unutilised bank overdraft facilities. The miss was driven by weak performance in the NW&FT segment, which faced intensified headwinds from the soft restaurant and hotel markets, forcing the implementation of some price reductions, as fossil-based alternatives fell in price.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2024/11/organoclick---market-headwinds-force-some-price-reductions/