SinterCast: Marks three years of y-o-y growth - ABG

Strong y-o-y growth: EEs +18%, SCs +36%, sales +22%
EBIT margin 23% (25%), ~33% adjusted for FX effects
End-of-life programme in H2 will be partly offset by others ramping


Q1: strong growth, but hedge revaluations hit EBIT

In Q1, EEs produced were 3.9m, up 18% y-o-y, and sampling cups sold were 44.6k, up 36% y-o-y. This resulted in sales of SEK 32.3m, up 22% y-o-y, of which 1.2m was from equipment installations. EBIT was SEK 7.4m (6.5m), for a margin of 23% (25%), lower than we had expected due to hedge contract revaluations of SEK -4.6m in the quarter. Adjusting for FX effects on EBIT gives a margin of ~33%, closer to the 34% we expected. Overall, we consider this a solid quarter with strong growth, despite missing our high expectations slightly. The company also had strong lease adj. FCF of SEK 15m (6m).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2024/4/sintercast---marks-three-years-of-y-o-y-growth/