Net sales were up 42% y/y to SEK40.8m. This was above our estimates of SEK35m due to the strong beat from Polygiene. Polygiene sales were SEK23.5m vs our est of SEK17.9m and Addmaster SEK17.3 vs our est of SEK17.6m. Gross margin was 71.6%, driven by good cost control. EBITDA came in at SEK5.7m, corresponding to an EBITDA margin of 14% (-20% last year). This was in above our estimates of SEK2.7m. Operating cash flow after the change in working capital came in at SEK4.6m (SEK3.3m).

We are making minor adjustments for Q4 2024, resulting in a 4% increase for the full year, but we are keeping our estimates for both sales and margins for 2025e and 2026e unchanged. We are also raising the gross margin by 2 percentage points to 68% for Q4 but maintaining our assumption of a 66% gross margin in the long term. Due to the historically volatile EBITDA and EBIT margins, we need to see a series of solid quarterly reports before we can trust to raise both the gross margin and operating profit margins in the long term.

Our valuation range is between SEK5 to SEK16, with a Base Case of SEK13 with assumptions it will reach a EBITDA-margin of 14% 2025e. Based on our estimates, Polygiene Group trades at an EV/EBITDA of 15.6x and an EV/Sales of 2.1x for 2025e.