Polygiene - Q4 sales slightly behind ABGSCe
Sales growth of 41% despite FX headwind Addmaster continues to impress DCF valuation range of SEK 30-49 (29-48) Q4: Pre-announced sales of SEK 26. 9m (19. 0m) Polygiene announced on 15 January that it expects Q4 sales of SEK 26. 9m (41% y-o-y) vs.
our estimate was SEK 29. 1m. Note that since our latest update, the US dollar has weakened roughly 5% against the SEK, with this shift explaining most of the deviation.
In that regard, we think the ramp-up in sales still follows our overall projection. According to the press release, Addmaster was even more impressive, as it is expected to grow revenues in Q4 to GBP 1. 7m (1.
0m), corresponding to a y-o-y growth rate of 69%. Although Polygiene will not directly benefit, given that Addmaster will be consolidated from January, we think it is a good indication of the demand for its products and it raises our expectations regarding future contributions. FX headwind explains sales deviation vs.
ABGSCe As a result of the positive news from Addmaster, we raise our sales estimates for its contribution in ‘21e to SEK 85m (78m). We also think that the continued inflow of new orders during Q4 will offset the depreciation in the US dollar, and we stick to our ‘21 sales estimates for organic growth in Polygiene. In total, this results in a sales estimate revision of 2.
1% for 2021. Uptick in Addmaster assumption and new orders Out of the 12 orders that were communicated during Q4, we think Bedgear, HSP Hanse Shopping, Armani and Muirhead will have the largest impact on sales. Our updated DCF valuation indicates SEK 30-49 (29-48) per share.
The full report will be released on 25 February.
