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I-tech: Continued strong growth, outlook unchanged - ABG

Sales -3% and adj. EBIT +2% vs. consensus
Stronger than expected FCF on SEK 7m WC release
Outlook unchanged, continued strong demand from paint makers


Q3 results

Sales came in at SEK 32m (-4% vs. ABGSC 34m, -3% vs. consensus 33m), +51% y-o-y (+48% organic). EBIT was 8m (+3% vs. ABGSC 8m, -4% vs. consensus 9m), and adj. EBIT was 8m (+3% vs. ABGSC 8m, +2% vs. consensus 8m) for a margin of +25% (ABGSC +24%, consensus +24%). Adj. net income was 7m (+2% vs. ABGSC 7m, -3% vs. consensus 7m) for a margin of +21% (ABGSC +20%, consensus +21%). The company produced lease adj. FCF of 17m, +81% y-o-y. No big surprises in the quarter, but FCF was better than expected due to a WC release of SEK 7m.
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