Overview
Sweden polymer products maker's Q1 sales met analyst expectations, down 4% yr/yr
Q1 EBITA margin unchanged at 11% as higher input costs impact results
Company says Medical Solutions margins pressured by new projects not yet at planned volumes
Outlook
Company says higher input prices will temporarily affect margins amid ongoing market uncertainty
Nolato plans commercial volumes from major Hungarian customer project starting end of second qtr
Company says strong financial position enables intensified acquisition agenda and investment in new technologies
Result Drivers
NEW PROJECTS AND PRODUCTS - Medical Solutions margins were negatively impacted by start-up of new projects and products not yet at planned volumes
STRONG DEMAND IN MATERIALS - Materials business area saw sharply increased volumes, mainly for data centers and defense-related sectors
HIGHER INPUT COSTS - Company said higher prices of input goods are creating temporary margin pressure, though these are passed on to customers over time
Company press release: ID:nMFNc3CVkn
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Meet
SEK 2.36 bln
SEK 2.36 bln (3 Analysts)
Q1 Net Income
SEK 181 mln
Q1 EBITA
Beat
SEK 260 mln
SEK 257 mln (2 Analysts)
Q1 Basic EPS
SEK 0.67
Q1 EBITA Margin
11.00%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Nolato AB is SEK63.00, about 27.8% above its May 5 closing price of SEK49.30
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)