ORGANOCLICK AB (PUBL) PUBLISH INTERIM REPORT FOR Q1 2023
Translation from CEO Mårten Hellbergs comments to the Interim Report.
Q1, 1 January – 31 March 2023
The Group compared with 2022
» Net revenue amounted to SEK 43.5 (32.6)million
» The gross margin amounted to 25.9 (25.2)%
» EBIT amounted to SEK 0.1 (-4.2)million
» Cash-flow from operating activities amounted to SEK -15.2 (-16.4)million
A word from the CEO
2023 started out well. The Group’s sales grew by 33 percent to MSEK 43.5 (32.6) despite a weak construction and consumer market. The streamlining measures implemented during the autumn have reduced our operating costs by -10 percent. All in all, this results in us, for the first time ever, recognizing a positive operating profit for the first quarter.
The most significant growth was generated in the Nonwoven & fiber technologies business unit, where sales increased very strongly to MSEK 17.5 (0.8). The increase is mostly attributable to existing customers increasing their volume, but also to new customers placing initial orders during the quarter. At the end of the quarter, Sharpcell, the Finnish manufacturer of nonwoven, announced a launch of products that use our biobased binders. In April, US Glatfelter, one of the world’s largest manufacturer of nonwoven, followed with an announcement that it too will launch products incorporating our biobased binders. With these two launches, we are becoming an increasingly established player in the binder market.
The business unit Green coatings & maintenance products has seen a continued challenging market for its consumer products. We continue to have a healthy acquisition of new customers, but the overall market has diminished considerably. Sales during the quarter decreased by -22 percent to MSEK 10.8 (13.9), with negative sales growth across all segments except for Car care. Our promotion of OrganoTex exports is beginning to show results, however. At the end of April, Bever, the largest outdoor chain in the Netherlands, introduced our full OrganoTex range across its more than 40 stores. With this collaboration, together with our other partnerships, OrganoTex is developing in the right direction.
The weak construction market has had a negative impact on the business unit Functional wood, resulting in a decline in sales of -15 percent to MSEK 15.2 (17.9). Sales activities in Germany have been successful, however, and we expect them to drive growth in the German market.The launch of OrganoWood Nowa has also been well received among our customers. This product now represents almost all of our sales. Our assessment for the rest of the year is that the Swedish market will remain weak while some export markets will see growth.
The cash flow for the quarter was burdened by our significant sales growth, which has tied up working capital in trade receivables. This, however, is a temporary effect, which we are counteracting by means of our credit facilities. We keep to our goal of generating a positive cash flow in the year as a whole.
With the continued growth of our binders and a new, lower cost structure in place, we are evolving in the right direction. We have a strong portfolio of customer projects and own development projects that will give rise to additional product launches during the year. Our long-term efforts have now started to give results, on the financial side, but also in that our biobased solutions now are replacing thousands of tonnes of plastics and fossil chemicals!
CEO, OrganoClick AB
The complete version of the Interim Report is attached in this press release and is available on the companys´ homepage. The informationen in this Interim Report is according to the rulesof Nasdaq First North Growth Market.
This disclosure contains information that OrganoClick AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 05-05-2023 08:30 CET.