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Balco Q3: A bit weaker on sales, EBIT hit by significant increase in cost of goods - SEB

Balco reported Q3 sales 3% below our forecasts. EBIT took a significant hit from increasing cost of goods, with gross margins down 760bp y/y (from 27.2%, to 19.6%). EBIT of SEK 16m is almost half the level we and consensus expected. Acting CEO Camilla Ekdahl also announces a SEK 25m savings programme (about 20% of our current EBIT forecast in 2023) and guides for macro factors to impact "intake, sales and earnings negatively over the coming quarters".

Balco reported Q3 sales 3% below our forecasts. EBIT took a significant hit from increasing cost of goods, with gross margins down 760bp y/y (from 27.2%, to 19.6%). EBIT of SEK 16m is almost half the level we and consensus expected. Acting CEO Camilla Ekdahl also announces a SEK 25m savings programme (about 20% of our current EBIT forecast in 2023) and guides for macro factors to impact "intake, sales and earnings negatively over the coming quarters".
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