Inission: Expecting strong sales but weak margin - Nordea

When Inission reports Q2 results on 20 August, we expect a top-line result of SEK 309m, the highest number that the company has ever reported and an increase of 11% y/y.

Even though this is, to some degree, the result of recent M&A activity (contributing SEK 47m to sales in Q2), we still estimate an organic sales decline of -5%. Although this is a bit on the optimistic side given the current macroeconomic environment, we note the importance of the recently won SEK 94m order for ventilators, as well as another COVID-19-related order of NOK 20m, which we expect to contribute about SEK 30m in the quarter. On a less positive note, we lower our Q2 EBIT margin expectations by 140 bp, down 310 bp y/y, due to a negative price mix and one-offs that are attributable to capacity being transferred to the Borås site as a result of this order.

As such, we cut our EBIT estimate for Q2 to SEK 11m from SEK 15m. We also slightly increase our fair value range to SEK 116-134 (116-132)

https://research.nordea.com/CompanyDetails/15054/Inission

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