Polygiene Group: No recovery in sight - ABG

• Still facing severe headwinds
• Retail market back to growth in Q2
• Balance sheet remains strong but growth is needed

Q2: Net sales -47% y-o-y (Freshness -55%, Protection -41%)
Polygiene reported Q2 net sales of SEK 25.4m (47.5m), which is down over 50% y-o-y accounting for a positive FX effect of 4% in the quarter. This was well below our expectations, as we thought the company would start to see benefits from a re-opening in China. It should be said that the actual sales drop from Polygiene's clients was 30% and the rest was explained by lower sales to distributors and raw material processors. EBIT was SEK -5.3m (11.3m), which was also below ABGSCe. However, a stronger gross margin, cost initiatives and favourable working capital movements decreased to impact on FCF, which was SEK -3.4m in Q2, leading to end of Q2 cash of SEK 47m with close to zero debt

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/c858be0df48d473a982a584aad3decf8/pdf/no-recovery-in-sight.pdf