Urb-it: Unaccomodating operating conditions - ABG

Q2'23 sales -10% vs. ABGSCe
Volume decline offset by positive FX impact
We cut '23e-'25e sales by 29-42% to reflect trading update


Q2'23 in brief

Q2'23 sales of SEK 11.6m were 10% below our estimates and the cash burn was 7% lower than we anticipated. Sales declined by 6% y-o-y, as volumes declined y-o-y by 14% while FX effects (EUR and GBP) contributed positively. The company's contribution margin turned slightly negative from Q1'23 to Q2'23, as volumes contracted – a consequence of Urb-it's significant operating leverage.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/urb-it/Equity-research/2023/8/urb-it---unaccomodating-operating-conditions/