A return to growth, approaching profitability

Performance Chemicals grows 17% as EBIT nears breakeven. Cost-savings programme successful, but still potential left. Markets remain sluggish, but working with sales to drive growth.

Delivering on expectations

Continued sequential growth, delivering on cost savings. Wind market improving, wind power customers' order intake +40%. Raise sales estimates +4% and EBIT SEK +5-7m, 1.1-0.8x EV/Sales.

Controlling costs as expected

Nexam Q4'23 results fast comment

Moving in the right direction

Q4e: sales SEK 50m, up +9% q-o-q, EBIT -2m (-4m). Minor estimate changes, eyeing profitable growth in '24e-'25e. Trading at 1.5-1.1x EV/Sales, fair value SEK 3-5.

Continued improvements from here

Sales and EBIT up from Q2 low, reaching SEK 46m and SEK -2.8m. Order situation seems to be improving as destocking wears off. We expect earnings to improve from here, and break-even in '25e.

Recovery from Q2 low as expected

Expect some recovery after disappointing Q2

Q3e sales SEK 49m, -14% y-o-y, +17% q-o-q; EBIT SEK -3m (-2m). Change of analyst: '23e-'25e sales down 1-5%, adj. EBIT SEK +5m. Fair value SEK 3-6 (4-9), return to growth needed for higher valuation.

Cautious optimism for H2

Adj. EBITDA SEK -5m vs. ABGSCe SEK 1m. Cash of SEK 20m and an unused credit facility of SEK 20m. Slow but gradual improvement in H2e.

Nexam Q2'23 initial thoughts

Continued weak market for PET foam additives

Q2 should be burdened by weak PET foam market, but Reactive Recycling should develop in the right direction. Trading at 1.3x EV/sales on '24e.

More focus on Reactive Recycling

Q1'23 sales were weak at SEK 52m vs. ABGSCe SEK 59m. Increased unused overdraft facility of SEK 20m, previously SEK 11.5m. Trading at 18x EV/EBITDA on '24e.

Nexam Q1'23 initial thoughts

Long-term potential looks solid

Q1'23 on Thursday, 20 April. We expect sales of SEK 59m, +9% y-o-y. Share is trading at 18x EV/EBITDA on '24e.