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Footway Q4: Cost management and positive OCF - SEB

Q4 sales (-35% y/y) are c. 5pp below our forecast, burdened by the implications of the ongoing restructuring, while a LBIT of SEK 30m is broadly in line with our SEK 28m forecast. Adjusting for NRIs totalling SEK 19m, our initial take is that underlying LBITA is closer to breakeven (SEBE: LBIT of SEK 7.5m). Stock-in-trade, as well as the net debt position, are better than we expected, reflecting solid OCF generation of SEK 33m in the period. Our mid-point is SEK 3 per share.

Q4 sales (-35% y/y) are c. 5pp below our forecast, burdened by the implications of the ongoing restructuring, while a LBIT of SEK 30m is broadly in line with our SEK 28m forecast. Adjusting for NRIs totalling SEK 19m, our initial take is that underlying LBITA is closer to breakeven (SEBE: LBIT of SEK 7.5m). Stock-in-trade, as well as the net debt position, are better than we expected, reflecting solid OCF generation of SEK 33m in the period. Our mid-point is SEK 3 per share.
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