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Scibase Q3’23: First take – record electrode sales - Redeye

Redeye saw a Q3 report showing sales above our estimates, with a total growth of 47% for the quarter. Costs were again higher than expected, mainly driven by the marketing efforts that were picking up in the US. The gross margin was higher than expected at 68%, although adjusted for fx effects, it aligned more with our expectation at 65% vs our estimate of 66%. The EBIT result was SEK -12.7m vs. our estimate of -11m; the higher marketing costs mostly drove the deviation. Growth continues at a really good pace in Germany, while US sales were still hampered in the quarter by delays in the Medicare fee schedule review.

Redeye saw a Q3 report showing sales above our estimates, with a total growth of 47% for the quarter. Costs were again higher than expected, mainly driven by the marketing efforts that were picking up in the US. The gross margin was higher than expected at 68%, although adjusted for fx effects, it aligned more with our expectation at 65% vs our estimate of 66%. The EBIT result was SEK -12.7m vs. our estimate of -11m; the higher marketing costs mostly drove the deviation. Growth continues at a really good pace in Germany, while US sales were still hampered in the quarter by delays in the Medicare fee schedule review.
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