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Third party research

Freemelt: Soft Q1 sales, but 3 machine & 3 project orders - ABG

Freemelt Holding

This is a third party research report and does not necessarily reflect our views or values

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Soft Q1 sales of SEK 2.9m on no machine deliveries, but 6 orders
Share issue readies balance sheet for year of commercialisation
6 deliveries in backlog, estimates and long-term view unchanged


Sales miss vs. our estimate only due to delivery timing

In Q1, the company received orders for two Freemelt ONEs and one eMELT. However, no machines were delivered during the quarter (we had estimated one eMELT), and sales were therefore only SEK 2.9m (0.8m), compared to our estimate of 9.4m. We believe this will be recouped in the coming quarters as deliveries are made. With opex in line, adj. EBIT was SEK -12m (-12m), compared to our estimate of -9.3m. The company carried out a share issue during the quarter, infusing SEK 78m into the company and increasing the number of shares by 2.75x, leaving it with a cash position of SEK 72m vs. R12m lease adj. FCF of -76m. In addition to the machine orders, Freemelt also secured three project orders in the quarter
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