Sweden's OrganoClick Q3 revenue falls 50% on lower Nonwoven and Wood Protection sales

Overview

• Sweden green chemical firm's Q3 revenue fell 50% yr/yr due to lower Nonwoven and Wood Protection sales

• Pro forma Q3 sales rose 4.9%, led by 23% growth in consumer brands

• Operating loss and cash flow from operations improved as cost savings took effect

Outlook

• Company expects continued good sales for consumer products from existing and new customers

• Company to prioritize ongoing savings program and cost base adaptation to new sales volume

• OrganoClick aims to transition to a pure green chemical company via timber production out-licensing

Result Drivers

• CONSUMER BRANDS GROWTH - Co said double-digit sales growth in consumer brands drove pro forma sales increase

• COST SAVINGS - Co said lower costs and improved product mix helped operating profit and cash flow

• LICENSING TRANSITION - Shift to licensing model in Wood protection reduced sales but expected to improve profitability

Company press release:

Key Details

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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.)