OrganoClick: Postive EBIT surprises, but cash flow lags - ABG

EBIT SEK 0.1m vs. ABGSCe -3.8m
Non-woven & fiber technologies sales at SEK 17.5m vs. ABGSCe 10.3m
Cash position of SEK 10.7m


Q1 results

Sales were SEK 43.5m (11% vs. ABGSCe 39.2m), up 33.2% y-o-y. NWT saw strong growth to SEK 17.5m, which was clear above our estimate of 10.3m thanks both to volume increases among existing customers as well as new orders. However, GCM came in slightly weaker than expected at sales of 10.8m compare to our forecast of SEK 11.1m as it continues to struggle with low consumer demand (100% B2C sales). EBIT for the group was SEK 0.1m, stronger than our forecast of SEK -3.8m. Moreover, OCF was SEK -15.2m due to seasonal build up of receivables into Q2, Organoclick's strongest quarter. This leaves a thin cash position of SEK 10.7m with not much room for error, but Q2-3 should see better cash flow from NWC.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/5/organoclick---postive-ebit-surprises-but-cash-flow-lags/