OrganoClick: NW&FT return to growth delayed - ABG

Sales down 14% y-o-y as restaurant market headwinds intensify
GC&MP strength improves mix, cost control, EBIT held up better
We reduce '24e-'26e sales by 4-8% on soft Q3 and NW&FT outlook


Q3 results

The Q3 numbers came in below our expectations, with sales down 14% y-o-y, and adj. EBIT down to SEK -3.0m (-2.8m). The main difference maker compared to recent quarters was intensified headwinds in the restaurant and hotel markets, causing a 31% sales drop in the NW&FT segment. The company also stated that it had to implement some price reductions on its binders due to falling prices of fossil-based alternatives. EBIT held up better due to good cost control and a better mix thanks to the continued growth in the higher margin GC&MP segment. The company ended the quarter with a cash balance of SEK 4m, and unutilised overdraft facilities of SEK 5m, compared to a R12m lease adj. FCF of SEK -13m.

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