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Press release

Västra Hamnen Market Focus: Magle Chemoswed: Strong margins due to mix

Magle Chemoswed Holding
  • Net sales in Q1 fell short of our estimates as manufacturing dipped
  • Profits still outperformed due to beneficial sales mix
  • We maintain our valuation interval SEK 46.60 – 62.80 SEK per share

Magle Chemoswed’s Q1 sales came in clearly below our estimates as sales of generic APIs and contract manufacturing had an unusually weak quarter. Operating margins and net profit came in impressively strong, however, due to a shift towards high-margin business areas such as DSM sales and royalties, as well as solid cost control. After the release of the Q1 report came news that Magle Chemoswed has entered a pre-agreement to buy land next to its productions site in Malmö, which enables future expansion of its CDMO operations.

The full report is available here.

About Market Focus


The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance's commissioned research offering.

This is a press release from Västra Hamnen Corporate Finance AB. 
Web: vhcorp.se
Twitter: @vhcorp_se (https://twitter.com/vhcorp_se)

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