Sweden's Polygiene Q3 sales fall on weak textile demand

By Reuters News


Overview

  • Sweden ingredient tech firm's Q3 net sales declined yr/yr amid weak demand

  • Gross margin fell to 63.7% from 71.1% as profitability came under pressure

  • Company posted negative EBITDA and EBIT for the quarter


Outlook

  • Company did not provide specific guidance for future quarters or the full year in the press release


Result Drivers

  • TEXTILE INVENTORY GLUT - Co said elevated distributor inventory in textile business led to lower order volumes and drove much of the yr/yr sales decline

  • NEW CUSTOMER ORDERS - Co cited new orders from Kariban and Move Dance as supporting diversification into new applications and end markets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

SEK 26.30 mln

Q3 Gross Margin

63.70%

Q3 EBIT

-SEK 4.40 mln

Q3 EBITDA

-SEK 3 mln


Analyst Coverage

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 22 - Sweden's Holmen Q3 sales miss estimates

  • Oct 22 - Sweden's Dometic Q3 sales rise and beat estimates

  • Oct 22 - Sweden's Betsson Q3 revenue rises 10% on casino growth


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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