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DistIT: Conditions still tough for Aurdel and EFUEL - ABG

We cut '24e-'25e adj. EBIT by 17-13%
Aurdel and EFUEL likely to delay recovery
'24e-'25e EV/EBIT 37x-12x


What to expect in Q4'23

We anticipate Q4'23 sales of SEK 599m and EBIT of SEK -8m, down from our previous estimates of SEK 649m and SEK 13m. Once again, we cut estimates to reflect tougher consumer conditions that adversely affect Aurdel and EFUEL. In particular, we cut our expectations for a sales rebound for Aurdel and assume no sequential growth for EFUEL, since the company is actively diversifying its sourcing — a process that likely takes more time than we had previously assumed. We expect operating cash flow of SEK 27m, with working capital releases of SEK 38m.
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