Sweden's Nolato Q3 profit slips on higher input costs
Sweden's Nolato Q3 profit slips on higher input costs
Overview
Sweden-based polymer products maker's Q3 sales rose 7%, or 3% organically, yr/yr
Q3 EBITA and margin declined yr/yr due to higher input costs
Company completed acquisitions of Unitron and part of Qualtech in Q3
Outlook
Company sees continued challenging business environment and higher input prices impacting margins
Company says financial position remains strong, supporting flexibility for future investments
Result Drivers
HIGHER INPUT COSTS - Co said increased prices for input goods contributed to lower EBITA margin
NEWER PRODUCTS - Co said growth in Medical Solutions was driven by increased volumes of newer products in Drug delivery and IVD
ACQUISITIONS - Unitron and Qualtech acquisitions contributed to sales in Drug delivery
Company press release: ID:nMFN6stNcF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income |
| SEK 172 mln |
|
Q3 EBITA | Miss | SEK 254 mln | SEK 274.50 mln (2 Analysts) |
Q3 Basic EPS |
| SEK 0.64 |
|
Q3 EBITA Margin |
| 10.20% |
|
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 SEK66.00, about 16% above its October 28 closing price of SEK56.90
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand
Oct 28 - Sweden's Peab Q3 sales rise on strength in all four business areas
Oct 28 - Germany's Symrise Q3 organic sales rise 5.3% on higher volumes
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.)