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Nexam Chemical: Expect some recovery after disappointing Q2 - ABG

Q3e sales SEK 49m, -14% y-o-y, +17% q-o-q; EBIT SEK -3m (-2m)
Change of analyst: '23e-'25e sales down 1-5%, adj. EBIT SEK +5m
Fair value SEK 3-6 (4-9), return to growth needed for higher valuation


Q3e: likely better than Q2, but still a ways to go

We expect sales of SEK 49m, down -14% y-o-y, but up +17% q-o-q, as customers' inventory reductions begin to ease. Higher q-o-q revenue and initial effects of the cost savings programme should improve margins somewhat compared to recent quarters, and we estimate EBIT of SEK -3m (-7% margin). After adding negligible financial items and taxes to this, we estimate net income of SEK -4m (-7% margin). The company should see some inventory release in the quarter, and we predict lease adj. FCF of SEK +1m, leaving a cash balance of SEK 21m.
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