Q1’22 sales were in line with expectations at SEK 752m (0% vs. ABGSCe at SEK 753m and -1% vs. cons. of SEK 757m) but lower EBITDA at SEK 228m (-4% vs. ABGSCe at SEK 238m and -10% vs. cons. of SEK 252m), for a margin of 30.3% (ABGSCe 31.6%, cons. 33.3%). The gross margin was in line with expectations at 56% (ABGSCe 55.9%) and as expected it declined y-o-y (-9pp.) on mix effects from consolidating Igenomix). EBITDA was impacted by SEK 40m higher opex to build-out genetic disorder testing (GPDx) business. Net profit was SEK 82m (-19% vs. ABGSCe at SEK 102m and -36% vs. cons. of SEK 128m). In constant currencies, sales grew 85% (ABGSCe 94%), with lower acquistion contribution from genetic services and slightly lower consumables sales but strong technology sales. Pro forma, excluding COVID business, sales grew 11% in constant currencies and EBITDA margin was 30.4% (-4pp. y-o-y).
Estimate changes and outlook
The company continues to see strong underling growht in the IVF market and continues to expect 5-10% growth globally. During the quarter it also saw “rapid sales growth” in GPDx, which could be another growth vertical and natural adjacent market to IVF. Reflecting the higher near-term cost, mainly in genetic services, we expect 3-5% negative revisiosn to cons ‘22e EBITDA.
Valuation and conference call
The share is down 3% the last week underperforming OMXSPI which is up 1%. YTD the share is down 45% and currently trades at 40x NTM EV/EBITDA (Factset), lower than its 3y avg. of 43x. Läs mer på ABG Sundal Collier
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