Enzymatica: Two birds with one stone - ABG

Sales trend reversal in Q2 SEK 75m share issue, balance sheet issues resolved Estimates unchanged, EV/Sales ’23e-‘24e at 4.5-3.1x
Q2 shows signs that the negative trend has been reversed Enzymatica reported sales of SEK 9.6m in Q2 (20% above ABGSCe) for y-o-y growth of 58%, thus reversing the negative sales trend seen over the previous five quarters. Seemingly this was driven by its own sales to pharmacies in Sweden, which grew 222% y-o-y, although its LTM market share in the cold remedy market declined to 4.5% (Q1’22 4.6%), as symptom relief continues to outperform preventatives. Partner sales were on par with last year, but the company highlighted that STADA and Sanofi inventories are now closer to normal and that they have started placing orders again. Together with upcoming launches in Turkey and Mexico, as well as anticipation of a more normal cold season, we believe there is reason to expect the upward pointing trend to continue. The gross margin was roughly in line with our expectations (52% vs ABGSCe 54%) and opex was in line, resulting in EBIT of SEK -15.9m, slightly better than we expected (ABGSCe -17.0).