April turned out to be yet another record month with sales having reached € 11.1m, a yoy increase of roughly 250%, surpassing the previous record month March (€ 10.7m). This increase should largely be the result of successful de-bottlenecking efforts on Cantourage's side during the past few months, which began positively impacting the group's top-line from last month onwards. With strongly growing demand, the company has been working on raising its processing capacities at its German site as well as through partnerships (e.g. with a Portuguese contract manufacturer).
Monthly sales development in €m
€ 100m annual sales in sight. While management has so far not issued a FY25 guidance, we would expect it to point towards the € 100m sales level, in line with our new sales estimate. Reaching € 100m sales would require monthly sales of some € 8m, which looks achievable in light of the recent operating developments.
Scale to kick in. While the company did not announce profitability figures, the strong sales growth should feed down to EBITDA. Taking into account last year's margin (eNuW: 7.5%) and the operating developments since the start of the year, the FY25 EBITDA margin looks set to surpass 10% despite ongoing investments into growth.
Share price de-coupled from fundamentals. Despite expected FY25e sales growth of 94% yoy, Cantourage should be able to reach a 10% EBITDA margin, implying an attractive EV/EBITDA multiple of 5.8x. We confirm our BUY rating with a € 13 PT based on DCF.
ISIN: DE000A3DSV01
