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Nexam Chemical: Controlling costs as expected - ABG

Sales +1.1% and adj. EBIT SEK -0.4m vs. ABGSCe
CF worse than expected due to NWCC, balance now SEK 9m
Cost savings programme will have full effect in Q1'24


Q4 results

Sales came in at SEK 51m (+1% vs. ABGSC 50m), -9% y-o-y. EBIT was -2.1m (-21% vs. ABGSC -1.7m), and adj. EBIT was -2.1m (-21% vs. ABGSC -1.7m) for a margin of -4% (ABGSC -3%). Adj. net income was -3.0m (-13% vs. ABGSC -2.7m) for a margin of -6% (ABGSC -5%). The company produced lease adj. FCF of -6.5m, +70% y-o-y, and ended the quarter with a cash balance of 9.1m vs. R12m lease adj. FCF -10.1m. Results were very in line with our expectations, except NWCC, which was SEK -5m (ABGSC +4m), mainly due to higher inventory than expected.
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