Yesterday evening SyntheticMR announced preliminary Q2 sales of SEK 12m, down 43% y/y and 47% below our expectations, referring to unforeseen events at the US subsidiary. As a consequence the sales guidance for 2024 was withdrawn. If isolated to Q2, the negative impact on 2024E sales is -10%, but we believe lower growth in H2 is likely, which could take revisions to -20%. 2024 FCF is at risk of turning negative, which would put a strain on the balance sheet.

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