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Third party research

StrongPoint: Sales below, EBITDA better - ABG

StrongPoint

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

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Q1: Sales 4% below, EBITDA NOK 10m vs ABGSCe NOK 4m
NOK 10m lower opex explains beat. Market remains challenging
Cons estimates likely unchanged


Q1: EBITDA of NOK 10m vs ABGSCe NOK 4m

Sales decreased 3% y-o-y, mainly driven by the large-scale ESL tag replacement in Norway last year, resulting in a 53% revenue decline. Total revenues came in at NOK 347m, -4% vs our NOK 362m. GP was -3% vs. our estimate, giving a GM of 42.2% (ABG 41.5%). The gross margin improvement stems from growth in the Baltics, and by a gross margin improvement in Norway from low margins from the ESL tag replacement last year. EBITDA came in at NOK 10m vs. ABGSCe NOK 4m, on NOK 10m lower opex. EPS came in at NOK -0.19 vs. ABGSCe NOK -0.16. Cash flow from operations was weaker compared to Q4, at NOK 8m vs NOK 77m. Net debt came in at NOK 72m vs NOK 59.6m in Q4. On outlook: StrongPoint states that the overall market remains uncertain, but they remain "cautiously optimistic about short-term prospects."
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