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Third party research

Midsona: Expect a year of continued improvement - ABG

Midsona

This is a third party research report and does not necessarily reflect our views or values

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Minor estimate changes
Q1e: 2% organic growth and margin improvements
Trading at NTM EV/EBITA of ~8x


What to expect in Q1'25e

We anticipate 2% y-o-y organic growth in Q1'25, implying sales of SEK 942m and EBIT of SEK 45m, for a margin of 4.8%. The organic growth is partly due to light comps (-4% in Q1'24). However, looking at consumer confidence and food spending, we anticipate that the softer-than-expected consumer climate in Q1 will have a negative effect on sales. However, we believe that more SKU reductions are value-accretive despite a more challenging consumer climate than previously expected. Operating cash flow should be negative, around SEK -70m, as Midsona should tie up some capital in Q1.
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