OrganoClick: Striving to be a clean chemistry player - ABG

Wants to implement licensing model for Functional Wood
Cash position still slim at SEK 15m, but up from Q3
The share is trading at 18x EV/EBITDA on '24e


NWT ramping up, GCM hurt by poor consumer sentiment

Organoclick reported Q4 sales of SEK 21.6m, up 21% y-o-y, mainly driven by the sales ramp-up in Non-woven & Technical Textiles (NWT) to SEK 5.5m (0.8m), which per Duni's Q4 report has now been commercially launched. As of Q4, the Duni contract is now nearing its full run-rate of SEK 7.5m per quarter, which we believe will be reached by Q1. However, Green Coatings & Maintenance (GCM) was softer than expected, due to weaker demand for both Biokleen and Organotex. Adj. EBIT came in at SEK -9.7m (-11.8m), which included an NRI of SEK -10m from restructuring costs following the discontinuation of in-house production of Baux within the Biocomposites segment.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2023/2/organoclick---striving-to-be-a-clean-chemistry-player/