OrganoClick: Weaker NW&FT growth as seasonality emerges - ABG

Q4 sales SEK 27.9m, up 29% y-o-y, adj. EBIT SEK -6.1m (-19.7m)
'24e-'26e down on weaker NW&FT as seasonality pattern emerges
Liquidity of SEK 23.8m vs. R12m lease adj. FCF of SEK -17m (-37m)


Q4: All segments growing, but seasonal headwind in NW&FT

Sales were SEK 27.9m, up 29% y-o-y (28% org.), with growth driven mainly by the NW&FT and GC&MP segments, which delivered 45% and 59% y-o-y growth, respectively. The FW segment also grew in the quarter, by 8%, breaking its three-quarter streak of declining y-o-y sales. Nevertheless, q-o-q NW&FT sales shrunk quite significantly from SEK 14.7m to SEK 9.0m, which we attribute to a seasonality pattern becoming established in this segment, as it concludes its first year of substantial sales. The pattern we see is a stronger Q3 and Q1, and a much weaker Q4 ahead of weak January restaurant sales. Adj. EBIT was SEK -6.1m (-19.7m), for a margin of -22% (-91%), with costs remaining steady. Lease adj. FCF was SEK 1.3m (2.5m), and the company now has SEK 23.8m in total liquidity including cash and credit lines, compared with R12m lease adj. FCF of SEK -17.1m (-37.4m).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/organoclick/Equity-research/2024/2/organoclick---weaker-nwft-growth-as-seasonality-emerges/