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Third party research

Energy Save: Sales growth but weak FCF on NWC - ABG

ES Energy Save Holding

This is a third party research report and does not necessarily reflect our views or values

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Sales SEK 54m (ABGSCe 55m), EBIT -4m (ABGSCe -7m)
Market conditions remain soft, anticipates weaker Q2
Cost savings programme initiated


Q1 results

Energy Save reported Q1 sales of 54m (-2% vs. ABGSCe SEK 55m), +39% y-o-y and +2% q-o-q, driven by the company's OEM business and Aira collaboration (85% of sales). The gross margin was 34% (ABGSCe 27%), vs. 38% LY. The company writes that it initiated a savings programme in the quarter, leading to cost savings and EBIT came in higher than expected at SEK -4m (ABGSCe SEK -7m). The company writes that it has carried out a review of its facilities, which is expected to reduce costs by SEK 2m on an annual basis. However, the positive FCF trend was halted and weakened to SEK -20m (4.7m in Q4'24) due to increased inventory and receivables. The cash balance came in at SEK 29m, vs. 54m in the prior quarter.
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