One of my main questions with this company : is Q3 a normal quarter or was it boosted by one offs ?
Listening to the conf call, it seems that there was no particular one off to explain the strong EBITDA. Interesting to note that Q3 revenue was almost flat qoq (+ 2 % qoq), so all the EBITDA growth (+ 44 % qoq) was explained by the gross margin increase (from 26 % in Q2 24 to 30 % in Q3 24).
During the call, their CFO explained that the gross margin increase was coming from both divisions and in particular the mix change in the chemical division (from commodity style products to proprietary products). Going forward, she expects the gross margin to remain at a high level (27 %- 31 % range), not far from the level reached in Q3 24.
SDV Price at posting:
34.5¢ Sentiment: None Disclosure: Held
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