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First impressions Zinzino, Q4 2022: Again, profitability above our expectations

28 Feb 2023

Equity research Zinzino

Today, 28 Feb. 2023, Zinzino published its interim report for the fourth quarter of 2022. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.

  • Total revenues increased by 7,0% in the third quarter, amounting to SEK 429 million. Our updated estimate was SEK 420 million. The outcome was thus slightly above our expectations.
  • Year-over-year, the gross margin increased by 6.6 percentage points to 34.9%. Our updated forecast was 30.0%. The gross profit of SEK 150 million was thus better than our forecast of SEK 126 million.
  • Year-over-year, the EBITDA result increased by 55% to SEK 40.8 million, corresponding to a margin of 9.5%. Our updated estimate was for SEK 24.1 million, corresponding to a margin of 5.7%.
  • Operating profit increased by 67% to SEK 34.8 million, corresponding to a margin of 8.1%. Our updated estimate was for SEK 18.4 million or 4.4%.
  • The result for the period’s earnings before tax was SEK 38.0 million, compared with our estimate of SEK 18.0 million. Earnings per share amounted to SEK 0.83, where our estimate was SEK 0.42.

Overall, the company’s fourth quarter was better than expected. At first glance, we think the stock should rise on this. However, the Q4 report states that the board is proposing a dividend of SEK 1.75 per share, down from previous SEK 2.0. In 2023, the company expects revenues of SEK 1,500-1,600 million at an EBITDA margin of 7%.

We intend to provide an updated analysis on Zinzino shortly.


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First impressions Zinzino, Q4 2022: Again, profitability above our expectations