Equity research Zinzino: Strong finish to 2023

Zinzino has presented preliminary sales figures showing revenues of SEK 529.8 million in Q4 2023, corresponding to a strong growth of 23%. That was well above our previous expectations of 470 MSEK, corresponding to an increase of 17%. The Nordics continue its negative growth, while Europe and North America (incl. Mexico) continue to perform strong.

The year-end report for 2023 will be published on 27 February 2024. For Q4 2023, the focus will be on profitability. The dividend proposal and possible additional guidance for 2024 are other interesting points.

Our updated forecast for gross profit in Q4 is 193 MSEK (182), corresponding to a margin of 36%. We expect operating profit to land around 67 MSEK, corresponding to a margin of 13%. Given updated forecasts and a lower discount rate (reduced risk-free interest rate), we have adjusted our fair value to SEK 73.2 per share (62.9) in a base-case scenario.

Read our latest research update here.

Disclaimer

Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, is engaged in corporate finance and equity research, publishing information on companies and including analyses. The information has been compiled from sources that Carlsquare deems reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be considered a recommendation or solicitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the analysis are intended solely for the recipient.

The content may not be copied, reproduced, or distributed to any other person without the written consent of Carlsquare. Carlsquare shall not be liable for either direct or indirect damages caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments offer the potential for appreciation and gains. All such investments are also subject to risks. The risks vary between different types of financial instruments and combinations thereof. Past performance should not be taken as an indication of future returns.

The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be disseminated to such persons. The analysis is not directed at natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations.

The analysis is a so-called Assignment Analysis for which the analysed company has signed an agreement with Carlsquare for analysis coverage. The analyses are published on an ongoing basis during the contract period and for the usually fixed fee.

Carlsquare may or may not have a financial interest with respect to the subject matter of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.

The analysts Markus Augustsson and Christopher Solbakke do not own and may not own shares in the analysed company.