Agtira: Mixed start to pivotal 2024 - Emergers

As announced already in February, capacity utilization and turnover in Q1 were weighed down by the plant disease in Härnösand, with a negative impact of SEK 4m. Agtira has taken measures to improve the crops, and reached a new record productivity for a single greenhouse at the end of the quarter, suggesting a full recovery in Q2. Now focus is set on establishing the production facility for Lidl, along with the ongoing establishment of 3000 sqm ICA Maxi in Haninge, with a planned launch in Nov 2024. With several contracts starting to kick in during 2024-2025 with a steep increase in cultivated area over the coming years, we expect Agtira to soon reach to SEK 100m in ARR, with good prospects for profitability in 2025. The SEK 20m investments in Q1 however, have put a strain on liquidity, reducing cash to SEK 15m and increased pressure on the company to strengthen finances. With the adverse short-term production development and heightened financing risk we now find support for a fair value of SEK 10-13 (14-16) per share, provided a rights issue can be avoided.