OrganoClick: All eyes on NWT ramp-up in H2 - ABG

Q2 report due on Wednesday, 17 August Fewer newbuilds could be a headwind for FW in ’23e NWT ramp-up in H2 crucial for confidence Softer Q2 for weather-dependent Organowood and Biokleen
We expect Q2 sales of SEK 45m, up 13% y-o-y, and gross profit of SEK 12.4m, for a margin of 27.6% (20.9%). The strong growth trend in Organotex should continue, but we expect a somewhat softer quarter for the more weather-dependent products, namely Organowood and Biokleen (see page 3 for Q2 weather), which should affect Functional Wood (FW) and Green Coatings & Maintenance (GCM). In Non-woven & Technical Textiles (NWT), we expect continued sequential ramp-up, but H2 should see this growth accelerate, mainly due to the Duni contract reaching full volume but also some ramp-up in the Ahlstrom-Munksjö deal. We expect EBIT of SEK -2.2m (-4.1m). Moreover, the abnormally high inventory in Q1’22 should start to decrease from Q2 onwards as legacy Organowood is phased out in favour of the new Silicium HT (should be fully phased out by Sept. ’22, according to the company).