• Sales 20% and EBIT adj. 34% vs. ABGSCe
• Strong quarter with record turnover
• Set to enter next phase of regulatory process

Q2: Strong quarter with a beat across the board

Sales came in at SEK 43m (+20% vs. ABGSCe 35m), +30% y-o-y (+28% org.). EBIT was SEK 10m (+32% vs. ABGSCe 7.7m), for a margin of +24% (ABGSCe +22%). EBIT adj. was SEK 12m (+34% vs. ABGSCe 9.0m), for a margin of +28% (ABGSCe +25%). EPS adj. came in at SEK 0.89 (+13% vs. ABGSCe 0.79), +31% y-o-y. FCF lease adj. came in at SEK 3.9m (-51% vs. ABGSCe 7.9m), -36% y-o-y. The profit was slightly offset by continued elevated costs linked to the EU regulatory process, which amounted to SEK 1.9m (~33% of external costs). Overall Q2 was a strong quarter for I-Tech with strong growth in turnover and earnings.

Estimates and outlook

On numbers alone, '24e-'26e sales change by +5%, and EBIT adj. changes by +8%. As communicated in May, the company writes in its report that the re-registration of Selektope within the EU is now entering the next phase as ECHA supported the expert group's opinion that Selektope has endocrine disrupting (ED) properties. The next process is expected to begin at the end of this month.

Valuation

The share has returned -16% L3M (vs. peer median +4.3% and OMXSSMAC +0.5%), and is currently trading at 13x-8.9x '24e-'26e P/E on our pre-report estimates vs. the peer median of 38x-21x. The company will host a presentation of the Q2 results at 10:30 CEST.