Equity Research Svenska Aerogel, Q2 2023: Lower than expected revenues but positive development with key customers

Today, Svenska Aerogel published its interim report for the second quarter of 2023. Below is a summary of our first impressions of the report’s outcome and the income statement’s deviations from our forecasts.

• During the second quarter of 2023, Svenska Aerogel experienced a slowdown in contrast to the strong sales growth observed from Q3 2022 to Q1 2023. However, the company sees a positive development with several key customers, which will probably be reflected in the figures at a later date Furthermore, on the evening of August 29, 2023, the company made the decision to issue a convertible loan to its primary stakeholder, Gästrike Nord Invest AB. The primary intent behind this move is primarily to refinance a convertible loan that was initially secured in February 2023. This earlier loan is set to mature on August 31, 2023.
• Net sales in the second quarter of 2023 for Svenska Aerogel amounted to SEK 0,3 million, which corresponds to a negative growth of approximately 13 percent compared to Q2 2022. Our forecast of SEK 2.8 million in total revenue was thus significantly higher than the outcome.
• EBITDA amounted to minus SEK 9.7 million. Our EBITDA forecast was minus SEK 9.1 million. The difference is mainly attributable to higher than expected S&G costs and administration costs.
• The net result for Q2 2023 was minus SEK 12.2 million, lower than our forecast of minus SEK 9.1 million.

We intend to provide an updated research report on Svenska Aerogel report shortly.

Read our initiation report for Svenska Aerogel here.

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