Equity Research Svenska Aerogel, first impression Q3 2023: Revenues still at low levels, but promising order intake

Today, Svenska Aerogel published its interim report for Q3 of 2023. Below is a summary of our first impressions of the report’s outcome and the income statement’s deviations from our forecasts.

• In Q3 2023, Svenska Aerogel reported low Quartzene sales. Similar to Q2 2023, Q3 sales was a stagnation compared to the period between Q3 2022 and Q1 2023. This was not surprising, considering the macroeconomic climate, leading to a decline in investments, particularly in the construction and property industry. As highlighted in latest research report following the Q2 report, there was a positive trend with several key customers. This positive development is now evident through two substantial orders totaling approximately 3.2 tonnes in the recent weeks. This indicates a promising outlook for Q4 and validates the effectiveness of the commercialization process that has been set in motion.
• Net sales in Q3 of 2023 amounted to SEK 0,42 million, which corresponds to a negative growth of approximately minus 84 percent compared to Q3 2022. Our forecast of SEK 0.8 million in total revenue was thus higher than the outcome.
• EBIT amounted to minus SEK 9.6 million. Our EBIT forecast was minus SEK 8.9 million. The difference is mainly attributable to higher than expected Cost of Goods Sold (COGS)
• The net result for Q3 2023 was minus SEK 10.7 million, lower than our forecast of minus SEK 8.9 million. In addition to the higher than expected COGS, financial expences of minus SEK 1,0 million attributed to the difference in our estimates compared to the outcome.

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

Read our lates Equity Research report for Svenska Aerogel here.

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