CTEK Q3 net sales rise; profitability improves on cost control

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

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

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(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.)