Equity research Zinzino, Q1 2024: Growth and some scalability

Today Zinzino published its interim report for Q1 2024. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.

The Q1 report shows continued strong growth at rising margins. In terms of profitability, however, the outcome was slightly below our expectations. With a strong share performance ahead of the report, the share may fall back slightly on the report’s outcome. Zinzino sets a target of profitable growth of at least 20 per cent in 2024, which is in line with the company’s target for the entire period 2024-2026.

• Total revenues increased by 15% in Q4 2023 to SEK 455m. Our updated estimate was SEK 456m and the outcome was thus in line with our expectations.
• Gross profit grew with 23% to SEK 161m, compared to our forecast of SEK 162m. Year-over-year, the gross margin increased by 2.2 percentage points to 35.4%. Our updated forecast was 35.5%.
• Year-over-year, the EBITDA result increased by 16% to SEK 52m, corresponding to a margin of 11.4%. Our updated estimate was for SEK 60m, corresponding to a margin of 13.2%.
• The EBIT result increased year-over-year by 18% to SEK 45m, corresponding to a margin of 9.8%. Our updated estimate was for SEK 53m, corresponding to a margin of 11.7%.
• EPS grew by 21% to SEK 1.04. Our updates estimate was SEK 1.23 per share.

We intend to provide an updated analysis on Zinzino shortly. Read the latest research update here.

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