Equity Research Nosa Plugs: First impression Q3, 2023

This morning, Nosa Plugs reported its Q3 2023 earnings. Below are our first impressions of the report.

• Turnover came in slightly below expectations at SEK 1.9 million (2.1), a deviation of -7.6% compared to our estimates and a YoY growth of 20%. The deviation was mainly attributable to seasonally weaker hospital demand.
• EBITDA came in lower than our expectations at SEK -3.6 million (-2.3), a deviation of -54.8% and was mainly attributable to increased investment in product development as well as costs related to the listing and reverse merger.
• EBIT came in at SEK -3.9 million (-3.1) and included a write-down of patents amounting to SEK 4 million.

Overall we view the quarter as a stepping stone pending the launch of the smell training plugs. Deviations in absolute terms were not that large, even if the percentages were, and increased costs were mostly related to value increasing activities. Net sales grew YoY in existing product segments, meaning that, although Q3 is a seasonally weak quarter, demand is still increasing. The report will be covered more extensively in our following quarterly update, including revisions to our estimates for the smell training plugs launching faster than previously anticipated.

Read our latest update on Nosa Plugs here

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