Seafire: Strong operating result, expected one-offs - ABG

5% beat on sales, 25% beat on adj. EBITA
Demand remains strong, material costs decrease boosts margins
Strong operating result and refinancing positive for outlook


Q4 results

Sales came in at SEK 269m (+5% vs. ABGSC 257m), +60% y-o-y (+14% organic). EBITA was 15m (-22% vs. ABGSC 19m), and adj. EBITA was 24m (+25% vs. ABGSC 19m) for a margin of +9% (ABGSC +7%). Adj. net income was 3m (+135% vs. ABGSC -9m) for a margin of +1% (ABGSC -3%). The company produced lease adj. FCF of -44m, -5287% y-o-y. Due to the refinancing and main-market listing process, the quarter contained operating one-offs amounting to SEK -9m, and financing one-offs amounting to SEK -18m. This was somewhat higher than we expected, but as we consider them true one-offs, we think this is of lesser importance, and instead emphasise the strong operating result, with 14% organic growth and adj. EBITA margin increasing 1.5pp y-o-y. Most subsidiaries saw continued strong demand in Q1, except for Nordbutiker and DOFAB, but during the end of Q1 and in April, demand trended upwards for these two as well. Material costs decreased somewhat in the beginning of '23, boosting margins.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Seafire/Equity-research/2023/4/seafire---strong-operating-result-expected-one-offs/