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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
- Q4 net sales broadly flat SEK 35.6bn though organic revenue growth beat at -0.8% vs. consensus of -1.8% with strong LatAm performance offset by weaker North American and Asia/Africa figures.
- Q4 income showed a loss of SEK 4.1bn versus consensus of SEK -2.6bn – given the FY loss of SEK -5.2bn, no dividend is proposed for 2023 (market expected DPS of 0.11).
- EBITDA leverage stands at 3.9x from 3.8x at FY22 while OCF came in strong at SEK 3.9bn on the back of working capital reduction and reduced investments including divestment of their Memphis factory.
- CEO notes that while they are making progress towards divestments of non-core assets, the current “environment…can…negatively impact the time to realize these divestments, or in certain cases the valuations achieved”. Weak consumer sentiment is expected to continue into 2024 though they expect demand to stabilise over the year.
- FY24 outlook is below; CapEx guidance of SEK 5bn-6bn comes versus a market consensus expectation of SEK 5.15bn.
- Not many of their bonds have streamed prices yet this morning though we see mixed spread moves in those that have – most of the headlines have focused on the earnings and dividend miss while the strong OCF is credit positive.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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