Takeaways from the report
The Q4 report was surprisingly strong on both organic growth (18% vs. FactSet cons. 9%) and the gross margin (31.7% vs. cons. 29.3%). However, the strong organic growth and gross margin did not carry an incremental improvement on EBITA (2% below cons), which was weighed down by unexpected growth in opex. We do not deem the higher opex level a concern, even if it should be of a more permanent nature because the opex investments made during Q4'23 are aimed at increasing the company's capacity level and marketing its products — both of which bode well for future organic growth. Operating cash flow was strong once again at SEK ~256m (reported operating cash flow less interest expenses), helping deleverage the balance sheet additionally and freeing up capital for M&A.
