Q4: Sales more than double y-o-y, 6% above ABGSCe
Flexion reported another strong set of numbers in Q4, with net sales of GBP 21.7m (+108% y-o-y, of which 76% organic), which was 6% above ABGSCe. On gross profit, the report was in line with our estimate as the distribution gross margin was lower than expected, likely driven by strong sales from a game deal with a lower gross margin than the rest of the portfolio. EBIT of GBP 1.9m was well above our estimate of GBP 0.5m, but adj. EBIT was in line with our forecast (excluding FX gains and a new way of accounting for intangible amortisation). The company guided for sales growth of 20-40% for 2023.