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:

Key Details

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

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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.)