<a id="bm-comp-9402b9b8-2e45-4fba-ac09-862d337f307c" name="bm-comp-9402b9b8-2e45-4fba-ac09-862d337f307c" class="BMCustomAnchor"></a><table><tr><td bm-component-id="9402b9b8-2e45-4fba-ac09-862d337f307c" style="vertical-align: top; width:100.000000%;"><ul><li>Sales -39<font color="#000000">% vs. ABGSCe, EBIT SEK 5m vs. ABGSCe 16m</font></li><li>Weak Q2 due to inventory build-up following strong Q4/Q1</li><li>Gross margin continues to improve (59% vs. ABGSCe 56%)</li></ul></td></tr></table><a id="bm-comp-18417156-6821-477e-92c5-3b4cf022fce7" name="bm-comp-18417156-6821-477e-92c5-3b4cf022fce7" class="BMCustomAnchor"></a><table><tr><td bm-component-id="18417156-6821-477e-92c5-3b4cf022fce7" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Weaker Q2 than expected</h3><p>Sales came in lower than expected at SEK 32m (-39% vs. ABGSCe 52m), -26% y-o-y (-17% org. vs. ABGSCe 48%). The company writes that the lower sales are mainly due to natural quarterly variation, as well as strong sales in Q4'24 and Q1'25, contributing to inventory build-up among customers. As a result of lower sales, EBIT came in lower at SEK 4.7m (vs. ABGSCe 16m), for a margin of +15% (ABGSCe +30%). On a positive note, the gross margin continued to improve in the quarter and was 59% (vs. ABGSCe 56%). However, operating expenses rose in the quarter, mainly from costs linked to regulatory process (unspecified, estimated at SEK 1.8m) and increased personnel expenses following staff reinforcements. FCF lease adj. came in at SEK 2.7m (-61% vs. ABGSCe 6.9m).</p><h3 class="bm-h3">Estimates and outlook</h3><p>On numbers alone, '25e-'27e sales change by -9%, and EBIT adj. changes by -18%. Management writes that the global macro for shipping remains broadly positive. However, the company highlights one customer that is working down high inventory, which we believe could suppress near-term sales. Regarding the ongoing regulatory process, the company writes that it has met with the Commissioner's Cabinet to provide feedback on factual errors in the Selektope re-registration case. The company expects the outcome of the meeting to positively influence the next step in the process, which is the quarterly meeting of the Standing Committee on Biocidal Products (SCPB) in September.</p><h3 class="bm-h3">Valuation</h3><p>The share has returned +18% L3M (vs. peer median -3% and OMXSSMAC +12%), and is currently trading at 21x-14x '25e-'27e P/E on our pre-report estimates vs. the peer median of 47x-20x. <font color="#212529"><font style="background-color:#ffffff;"><font style="background-color:#ffffff;">The company will host a <a data-bm-trackable="false" href="https://www.finwire.tv/webcast/i-tech/q2-2025/" style="box-sizing:border-box; font-family:Arial, "Unifont Calibri", "Unifont Helvetica", "Unifont Gotham", "Unifont Arial", Unifont !important; color:#007bff; text-decoration:none;" target="_blank">presentation</a> of the Q2 results at</font></font></font> <font color="#000000"><font style="background-color:#ffffff;"><font style="background-color:#ffffff;"><font style="background-color:#ffffff;">10:30 CET.</font></font></font></font></p></td></tr></table><a id="bm-comp-29596adb-881c-4c1d-92f1-706b6aa026e5" name="bm-comp-29596adb-881c-4c1d-92f1-706b6aa026e5" class="BMCustomAnchor"></a><table><tr><td bm-component-id="29596adb-881c-4c1d-92f1-706b6aa026e5" style="vertical-align: top; width:100.000000%;"><table id="bm-img-283cdb52-c2b3-4547-b2fa-cafc3a145cb2" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="283cdb52-c2b3-4547-b2fa-cafc3a145cb2" bm-img-original-height="512" bm-img-original-width="645" bm-img-svg="image:image_upload/89863_01db62cd-ed97-4fb2-adc8-c069be95a581.svg" bm-img-width-hint="88.72%" id="bm-id-283cdb52-c2b3-4547-b2fa-cafc3a145cb2" src="https://abgsc.bluematrix.com/images/image_upload/89863_01db62cd-ed97-4fb2-adc8-c069be95a581_645.png" svg="/nas/web/clients/abgsc/images/image_upload/89863_01db62cd-ed97-4fb2-adc8-c069be95a581.svg" width="645" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier Estimates, Company Data</td></tr></table></td></tr></table>