• Low cash holdings likely to recover during coming quarters
• Marketing spend set to increase as sporting events return
• We maintain our valuation interval of SEK 73.00 – 92.00 per share

USWE reported lower net sales compared to our estimate for Q4 of fiscal year 2021/22, which is the period January – March 2022. Corrected for acquisitions and changes in foreign exchange rates, turnover actually shrank by 5.5 percent. However, the outcome is largely explained by disturbances in the supply chain and not by a lack of demand. For the whole of fiscal year 2021/22, sales grew by 88 percent, thus confirming our growth case. We make a few adjustments in our forecast model, principally a somewhat lower growth path of sales for the next few years. The overall long-term scenario is on the other hand intact, and we maintain our fair value estimate for the share.

The full report is available here.