OrganoClick reported Q4 sales of SEK 18.0m (-8% vs. ABGSCe of SEK 19.4m), down 1% y-o-y. Functional Wood (FW) had a difficult quarter, however this was expected as high wood prices had led to customers not stocking up on wood as usual in Q4 (sales were SEK 10.5m, -2% vs. ABGSCe). Within Non-woven & Technical Textiles (NWT), we started seeing sequential ramp-up in sales from the Duni contract. Sales were SEK 0.8m (ABGSCe was SEK 1.0m), up from SEK 0.2m in Q3’21. We also note that Duni started a marketing campaign of its biobased product offering in January, meaning the ramp-up should continue to escalate in Q1’22e and reach SEK 7.5m in quarterly sales by Q3’22e. Gross profit amounted to SEK 1.4m (+10% vs. ABGSCe) and EBIT was SEK -11.8m (ABGSCe was SEK -9.8m). The gross margin after variable costs increased to 43.8% (40.9%) following price increases in FW and increased sales of the high-margin OrganoTex. Finally, the launch of the new generation OrganoWood, Silicium HT, meant that temporary inventory build-up impacted cash flow negatively.
Minor estimate revisions on the Q4 numbers
There were no major surprises in the Q4 report, and we only make smaller estimate revisions as a result, lowering ’22e-’23e sales by 2%. Looking at NWT, our current estimates include one contract being signed in Q1’22, one in mid-22, and one at some point during ’23e.
Focus will be on new NWT contracts
The share is down 49% YTD, following contract delays in the NWT segment. Meanwhile, if our current assumptions of two new contracts in ’22e at ~SEK 25m each are correct, it would take annual NWT sales to SEK 80m (incl. the existing Duni contract) after a ramp-up period. If we assume a 20% incremental EBIT margin on these contracts, and we value them at 15-25x EBIT, that would result in an equity value of SEK 2.2-3.8 per share for them
Läs mer på Introduce
Aktuellt
SENASTE
