First impression Zazz Energy, Q3 2022: Refunds boost the profitability

Today, Zazz Energy published its interim report for the third quarter of 2022. Below is a summary of our first impressions of the report’s outcome and the income statement’s deviations from our estimates (set before information on production standstill).

• Net sales in the first quarter of Zazz Energy S.A. amounted to SEK 0 million. Our estimate was SEK 3.7 million. The difference was expected due to the production standstill earlier communicated by the company. However, Zazz Energy is being compensated for lost revenues; thus, total revenue amounted to SEK 2.8 million.
• Including other revenues, the company also received a refund of prepaid expenses related to raw materials. Including this refund, the EBITDA result amounted to SEK 2.2 million. We had estimated an EBITDA result of minus SEK 0.8 million.
• Including other revenues, the EBT result amounted to minus SEK 0.1 million. Our forecast was minus SEK 2.1 million.

We intend to provide an updated research report on Zazz Energy shortly. Read the initial coverage report here (SE).

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