OrganoClick: Nonwoven delivering above expectations - ABG

Sales of SEK 33.4m, up 50.3% y-o-y, adj. EBIT SEK -2.8m (-7.9m)
Nonwoven grows 486% y-o-y and 47% q-o-q
Challenging balance sheet, but signs of improving profitability


Q3: Nonwoven set up to overtake Functional Wood

In Q3, sales were SEK 33.4m, up 50.3% y-o-y. Sales growth was driven mainly by the Nonwoven & Fiber Technologies (N&FT) segment, which delivered growth of 486% y-o-y, going from SEK 2.5m to SEK 14.7m in the quarter. Q-o-q growth for the segment was also impressive, amounting to 47%, demonstrating good momentum in this relatively new segment. On our estimates, this means N&FT will overtake Functional Wood as the largest segment by year-end. Adj. EBIT was SEK -2.8m (-7.9m), for a margin of -8.4% (-35.5%), with the improvement driven by an improved gross margin and higher revenue. This converted into adj. EPS of SEK -0.04 (-0.09), and lease adj. FCF of SEK -2.6m (-3.0m). The closing cash balance was SEK 10m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/11/organoclick---nonwoven-delivering-above-expectations/