Polygiene Group: Recovery takes a bit longer - ABG

Weaker end to 2022 than feared
Re-setting growth expectations
Still reasons to be optimistic for H2'23


Q4: Organic sales growth -10% y-o-y, adj. EBIT in the red

Polygiene was not able to meet our expectations in Q4. Net sales were flat y-o-y but FX boosted the quarter by 10%, meaning organic growth was -10%. This was 11% below ABGSCe as we had assumed a recovery from Q3 where distribution sales were muted. The company was not able to adjust the cost base to the current situation and EBIT was SEK -6.4m (3.9m) and adj. EBIT was SEK -2.7m (6.2m). The adjustments stemmed from an inventory adjustment, restructuring cost, M&A related cost and a termination of a client contract, in total it summed to SEK 3.7m in IAC. We did not get an update on financial targets, but the company will look over the business plan, and it will likely result in a delay of the current targets in our view.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/polygiene/Equity-research/2023/2/polygiene-group---recovery-takes-a-bit-longer/