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CTEK Q3 net sales rise; profitability improves on cost control

By Reuters News


Overview

  • Sweden battery charging firm's Q3 net sales rose 2% organically to SEK 217 mln

  • Adjusted EBITA margin improved to 17.5%, driven by new products and cost control

  • Operating cash flow negative due to planned inventory build-up ahead of Q4


Outlook

  • Company aims to complete strategic review of EVSE business within current financial year


Result Drivers

  • NEW PRODUCTS - Co said new products contributed to strengthened gross margin and positive development in Consumer division

  • EVSE MARGINS - Improved margins in EVSE segment attributed to new EV charger Chargestorm Connected 3, per CEO Henrik Fagrenius

  • COST CONTROL - Co said continued good cost control contributed to improved profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

SEK 217 mln

Q3 Adjusted EBITA

SEK 38 mln

Q3 Operating Cash Flow

-SEK 5 mln


Analyst Coverage

  • The one available analyst rating on the shares is "strong buy"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy."

  • Wall Street's median 12-month price target for CTEK AB (publ) is SEK23.00, about 59.7% above its October 28 closing price of SEK14.40

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 28 - Sweden's SSAB Q3 revenue rises on higher prices and shipments

  • Oct 28 - SSAB tops profit expectations as EU import curbs boost steel prices

  • Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand


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.)

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