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Nexam Chemical: Continued weak market for PET foam additives - ABG

• Q2 should be burdened by weak PET foam market...
• ...but Reactive Recycling should develop in the right direction
• Trading at 1.3x EV/sales on '24e

Q2 expectations
We expect Nexam to deliver Q2 sales of SEK 56m, up 1% y-o-y, with a
gross profit of SEK 23m. We expect Performance Chemicals to see sales
of SEK 22m (flat growth y-o-y), which despite a weak market should be
mainly driven by sales of PET foam additives. We expect Performance
Masterbatch to deliver sales of SEK 33m. Moreover, we foresee a gross
margin for the group of 41.5% (39.7%) and adj. EBITDA of SEK 1m (-1m)
with a margin of 2.5% (-1.7%). Finally, we expect a net profit of SEK -3m
(-4m).
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