Polygiene Group: Addmaster continues its resurgence - ABG

On the right track after a challenging 2023
Positive revisions, >10% EBIT margins looks achievable
We raise our fair value range to reflect estimate revisions


Q1: Net sales +25% y-o-y (Polygiene +70%, Addmaster +3%)

5% y-o-y with a positive FX effect of roughly 2% in the quarter. It was 14% better than ABGSCe as the continued recovery in Addmaster clearly exceeded our expectations. It seems like separating the two brands again was the correct decision and after the re-launch of Addmaster's old website key KPIs have increased significantly. After a challenging few quarters for Addmaster, they are now back to posting y-o-y sales growth again and not too far off peak sales volumes. EBIT was SEK 3.3m (SEK -2.8m), which was better than ABGSCe at SEK -1.5m. The deviation was driven by higher sales volumes and lower other external expenses, suggesting good cost-cutting initiatives by the company.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/polygiene/Equity-research/2024/5/polygiene-group---addmaster-continues-its-resurgence/