First impressions Zinzino, Q3 2022: Profitability above expectations
17 Nov 2022
Today, Zinzino published its interim report for the third quarter of 2022. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.
- Total revenues increased by 12 per cent in the third quarter, amounting to SEK 350 million. Our updated estimate was SEK 346 million. The outcome was thus slightly above our expectations.
- The gross margin decreased by 2.6 percentage points to 31.7 per cent. Our updated forecast was 30.3 per cent. The gross profit of SEK 111 million was slightly better than our forecast of SEK 105 million.
- The EBITDA result fell by 37 per cent to SEK 25.4 million, corresponding to a margin of 7.3 per cent. Our updated estimate was for SEK 20.7 million, corresponding to a margin of 6.0 per cent.
- Operating profit fell by 47 per cent to SEK 18.4 million, corresponding to a margin of 5.3 per cent. Our updated forecast was for SEK 15.0 million or 6.3 per cent.
- The result for the period’s profit before tax was SEK 17.9 million, compared with our forecast of SEK 15.0 million. Earnings per share amounted to SEK 0.42, where our estimate was minus SEK 0.34.
Overall, the company’s Q3 2022 was better than expected from a profitability perspective. It provides insight into the company’s ability to meet rising costs, due in part to high inflation, through efficiency improvements at all levels. We intend to provide an updated analysis on Zinzino shortly. Read the latest research update here.
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