Russian divestment leaves ~SEK 800m net cash
On 23 December 2022, Ferronrodic announced the divestment of its Russian operations (~80% of sales, ~100% of EBIT), gaining SEK 1,090m in cash (SEK 75/sh), taking our estimated '22e net cash position to ~SEK 800m. Since the majority of the market cap now sits in the cash position rather than the remaining German and Kazakh operations, the key question is how this cash will be used; we have a '22e DPS of SEK 8/sh, assuming the majority of the cash will be used for M&A. For Q4e, that last quarter including the Russian business, we expect sales of SEK 1,149m, down 32% y-o-y (-64% org, +31% FX, +1% M&A), and adj,. EBIT of SEK 43m (116m), for a margin of 3.7% (6.8%). We expect discontinued net profit from Russia of SEK 26m, with SEK -2m from the remaining business.
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