Yesterday, NanoRepro AG published its consolidated preliminary H1'26 revenue while also highlighting a key milestone from its systematic full internal review process. In detail:
Double-digit growth of 26% yoy marks a strong preliminary H1'26, underpinning the highly attractive growth prospects of the new consumer health and wellness platform that NanoRepro is establishing. Preliminary consolidated sales came in at € 13m, beating our expectations of € 11m. We attribute the majority of this beat to a strong performance from Paedi Protect, as an unusually warm June looks set to have driven demand especially for sunscreen products beyond the anticipated level. While the company has not yet published a FY26 guidance, our old FY estimate of € 17.6m looks to conservative (H1 already covered 74% of our old FY estimate).
Process optimization milestone reached, FY27 EBITDA to turn positive. To recap, NanoRepro together with Paedi Protect and Deutsche Kosmetikwerke (newkee) launched a full internal review of processes, aiming to uncover synergies and bring down costs. In a first step, all 17 process areas comprising 160+ tasks were mapped, of which six action fields were prioritized: IT, marketing, product development, warehousing & supply chain, sales and procurement. As a first tangible measure, skincare production competence has been bundled at Paedi Protect (raw & packaging material procurement plus production planning and execution), allowing DKW/newkee to focus on brand management, marketing and sales.
Further, Kirchhain is set to become the central logistics hub, and finance and back-office harmonization follows from Q4 under incoming CFO Mike Eckel. In our view, this implies the potential to lift the EBITDA margin from -11% in FY25 (eNuW) to 7% in FY27e (eNuW), as costs should rise only moderately against a strong top-line development.
Raising our FY26 top-line estimate. Given the strong H1 contribution and typical H2 seasonality, noting that the warm June likely pulled some sun-care demand into H1, we raise our FY26 sales estimate to € 18.8m (eNuW old: € 17.6m). At the same time, the substantial process optimization efforts are seen to add c. € 0.5m in personnel and € 0.25m in other operating expenses. While this slightly compresses the FY26 EBITDA margin by 0.3pp to -0.8% (eNuW), the improved set-up looks strategically important to enable rapid combined scaling of NanoRepro, Paedi Protect and DKW/newkee going forward. FY26 EBITDA is hence projected at € -0.1m (eNuW), still markedly improved from € -1.7m in FY25. The audited FY25 accounts follow on 30 July.
Maintaining BUY at a raised PT of € 4.4 (previously € 4.3), based on DCF.
ISIN: DE0006577109
