Much weaker Q4 than we expected
On Friday 27 January, Garo pre-announced much weaker earnings than we expected, indicating group sales of SEK 340m with EBIT of SEK 9m, which included a non-recurring cost of SEK 15m (cost of change of product platform). The EBIT of SEK 9m was clearly below our previous forecast of SEK 50m for the quarter. The reason for the weaker result was solely attributed to the E-Mobility business, where a lack of components means that Garo has not been able to meet customer demand. The component shortages should gradually disappear during 2023, as its new EV charging product suite "Entity" starts production on 1 March and gradually ramps up thereafter. According to management, the Electrification business area has continued to perform well.
