NoHo Partners: Promising EBIT development in Q4 -Nordea

NoHo Partners reported Q4 EBIT of EUR 6.7m, +58% (EUR 2.5m) versus Infront consensus and 13% above Nordea. Q4 net sales were EUR 69.5m and came 3% above consensus and 2% above Nordea. Operating cash flow was EUR +9.8m in Q4, while cash position was EUR 6.4m at the end of Q4 (EUR 10.9m at the end of Q3). Government grants were EUR 3.0m in Q4. January sales of EUR 6.7m were down 13% y/y (43% of 2019 level), while the company expects February sales in the range of EUR 13-15m and operating cash flow between EUR -1-0m. March sales are expected to exceed EUR 21m with operating cash flow of EUR 2-3m. Cash flow impact is well in line with our expectations. NoHo aims to issue a guidance in conjunction with the Q1 report at the latest. The company has prepared for raw material price increases by centralising purchasing operations and increasing prices. Market is expected to return to normal during Q2 and operating cash flo w should turn positive after mid-February. We expect flat to slightly positive consensus estimate revisions on the back of Q4 numbers and note that company’s comments of operating cash flow for Q1 can be viewed as a slight relief.