Nexam Chemical: EBIT hovering around break-even - ABG
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Nexam Chemical: EBIT hovering around break-even - ABG

Report out 24 April
Q1e sales of SEK 53m, -1% y-o-y, EBIT SEK -0.1m (-1.4m)
Expect continued market weakness in PET-foam


Q1 expectations

We expect sales of SEK 53m for Q1, -1% y-o-y, +9% q-o-q. We believe that the market weakness in PET-foam will continue as end-markets, particularly the wind market, continue to be sluggish. We are therefore cautious about Performance Chemical growth and estimate sales of SEK 23m in Q1, down 10% y-o-y. We expect Perf. Masterbatch, which is more dependent on the general industry, to develop in a more stable manner and grow y-o-y (we estimate SEK 30m). We forecast that EBIT will be close to break-even (Q1e SEK -0.1m), with the help of the company's successful cost-savings programme, and we anticipate that EBIT will turn positive in H2'25.
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