Redcare Pharmacy (RDC) reported detailed results for Q3 2024, with its top line in line with its preliminary numbers. Sales grew at solid 21% yoy during the quarter, led by 20%+ yoy growth in both prescription (Rx) and non-Rx sales. Rx sales in Germany was exceptionally strong at 81% yoy in Q3 and picked further pace to 130% yoy in October on the back of rapid adoption of e-Rx. Adj. EBITDA, however, declined 25% yoy in Q3 and fell 11% short of consensus, due to accelerated marketing investments towards e-Rx. Considering the encouraging impacts of e-Rx, such as inflow from new customers, higher basket values, and higher repeat order rates, management plans to increase marketing spend to capitalize on the e-Rx momentum. RDC had reduced its EBITDA margin outlook for FY24 to 1.2%-2.2% at the time of prelims, which it has now confirmed. mwb research’s analysts see this as less of a concern, as long-term benefits could outweigh these initial costs. The analysts broadly maintain their recently adjusted estimates and confirm their HOLD rating on the stock at an unchanged price target of EUR 145.00. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

ZEAL’s Q3 results aligned with prelims, exceeding expectations and showing strong momentum despite the absence of jackpot peaks. Q3 sales reached EUR 44.3m (+42% yoy), surpassing mwb research’s estimate by +23%, driven by higher service fees that boosted the lottery brokerage margin to 16.8% (up from 13.8% in Q2) and efficient customer acquisition in H1, leading to increased user activity. EBITDA rose more than proportionally to EUR 14.9m (+59% yoy), benefiting from economies of scale. Games sales remained flat qoq at EUR 2.3m due to regulatory restrictions, with ZEAL focusing on optimizing its expanding portfolio, now over 200 games (up from 120+). The new charity lottery, Traumhausverlosung, exceeded expectations with its first draw, generating EUR 8.6m in billings and a 28% service fee for ZEAL, while attracting a younger, more female demographic. ZEAL also announced a 3.2% share capital reduction by retiring treasury shares and initiated a 2.6% share buyback at a +10% premium. Additionally, ZEAL boosted its FY24 outlook, raising sales guidance by around +12.5% and lifting EBITDA by +7.5% at the midpoint. Confidently, mwb research reiterates their BUY recommendation with an unchanged PT of EUR 58.00. The full update can be downloaded under https://www.research-hub.de/companies/ZEAL%20Network%20SE

Krones reported a good set of results in Q3 24. The strong business momentum witnessed in Q2 trickled into Q3. Revenues grew 13% yoy to EUR 1.32bn, supported by easing supply concerns. EBITDA increased at a stronger 22% yoy to EUR 134.9m (margin: +70bps yoy to 10.2%), buoyed by better capacity utilisation and efficiency. Revenues and EBITDA were 1% and 3% ahead of consensus, respectively. Order inflows were robust at EUR 1.32bn (stable yoy; book-to-bill: 1.0x) in Q3. This took the order backlog to EUR 4.4bn (+6% vs end-2023), providing good visibility until end 2025. Management is confident of its book-to-bill ratio staying slightly above 1.0x in FY24 and reiterated its FY guidance. mwb research’s analysts remain constructive on Krones’ prospects. Its strong market position (25% global market share), diverse product range, and sustainability focus are likely to help the company reach its ambitions sales target of c. EUR 7bn and an EBITDA margin of 11-13% by `28. With solid financials, Krones remains an attractive investment. The analysts maintain their BUY rating with an unchanged PT of EUR 145.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

GEA has announced its final Q3 results. They are in line with the pre-announcement in October, confirming moderate revenue growth (+1.4% yoy) and an EBITDA margin improvement of 80 bps. GEA reiterated its FY24 EBITDA margin and organic revenue growth guidance. Q3 order intake was up 4% yoy, but nine-month order intake was down 6%. Divisional performance was varied, reflecting mixed industry dynamics. Profitability benefited from a 300 bps increase in the share of high-margin service business, which now represents 39% of sales. However, operating cash flow in the third quarter was 24% lower than a year earlier due to a deteriorating net working capital position. While the Mission 30 strategy targets an EBITDA margin of 17%-19% and annual organic sales growth of 5% by 2030, these targets seem ambitious given the macroeconomic risks. mwb research’s analysts reiterate their HOLD rating with an unchanged PT of EUR 50.00. The full update can be downloaded under https://www.research-hub.de/companies/GEA%20Group%20AG

WashTec AG reported mixed results for Q3/9M with lower revenues but improved profitability. While Q3 revenues fell by 5.3% to EUR 114.1m, mainly due to a weak performance in North America, a positive trend is emerging after revenues declined by 8% and 6% in Q1 and Q2 respectively. This trend is supported by an increase in order intake in Q2 and Q3, which lifted the company's order book above last year's level. Despite lower revenues, EBIT increased by 2.6% to EUR 27.6m for the 9M period, reflecting the company's resilient business model. Free cash flow remained strong at EUR 25.0m in the first 9M, down slightly from EUR 26.8m last year. WashTec confirms its FY24 guidance and expects revenues to be in line with the previous year (±3%), albeit now at the lower end, and EBIT to increase by a mid-single-digit percentage. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 53.00, as they believe the turnaround is imminent. The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Zalando reported final Q3 2024 numbers that were in line with its preliminary release. The company reported a notable pick-up in gross merchandise volume (GMV). Revenues grew 5.0% yoy and adj. EBIT rose to c.4x Q3 2023 level. Positive results were driven by a strong start to the autumn/winter season, further supported by the company’s renewed ecosystem. Zalando's positive Q3 results reinforces its healthy market momentum. Moreover, its strong commitment to invest in key areas – such as driving customer loyalty and strengthening its European logistics network – should underpin GMV growth. mwb research’s analysts maintain their recently updated estimates and retain their PT at EUR 33.00. After the recent dip the analysts change their rating from HOLD to BUY. The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE

Hugo Boss reported somewhat better-than-expected Q3 2024 results in a muted demand environment. Sales stood flat yoy at EUR 1.03bn, slightly ahead of consensus by 1%. Although EBIT declined 7% yoy to EUR 95m, due to weaker gross profits and higher marketing and selling expenses, it beat market expectations by 6%. Results remained clouded by ongoing macroeconomic and geopolitical uncertainties. This prompted management to maintain its outlook for FY24. It continues to guide for sales growth of 1%-4% yoy to c. EUR 4.20-4.35bn and EBIT of EUR 350-430m (-15% yoy to +5% yoy). However, the company has a lot to catch-up in Q4 to reach the mid-point of its EBIT guidance. Beyond 2024, the increased stake of Frasers Group (now c.15%), the UK-based retail conglomerate, in Hugo Boss, could provide some impetus to its strategic investments. mwb research’s analysts are lowering their earnings estimates, mainly for taxes and financing costs. The analysts reiterate to BUY with a revised PT of EUR 65.00 (old: EUR 68.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Hugo%20Boss%20AG

Company Name: Singulus Technologies AG ISIN: DE000A1681X5   Reason for the research: Update Recommendation: Hold from: 06.11.2024 Target price: EUR 1.60 Target price on sight of: 12 months Last rating change: Analyst: Konstantin Völk Mixed Q3 preview // guidance looks ambitious Topic: Singulus will release its Q3 report on [ … ]

Company Name: EV Digital Invest AG ISIN: DE000A3DD6W5   Reason for the research: Update Recommendation: Buy from: 06.11.2024 Target price: EUR 1.80 Target price on sight of: 12 months Last rating change: Analyst: Frederik Jarchow Mixed H1 // Project defaults to burden business; chg. Topic: Last week, EVDI published unaudited H1 [ … ]

Elmos’ stock surged by nearly 16% following its solid Q3 results, with sales slightly beating consensus at EUR 156.6m (+3.4% yoy) and an EBIT margin of 25.5% (-2pp yoy). The company outlined an ambitious yet achievable 2030 roadmap, aiming for EUR 1bn in sales with a stable EBIT margin of around 25%, leveraging the increasing use of intelligent electronics in modern vehicles. This growth strategy is underpinned by enhanced cash flow, supported by capex kept below 10% of sales, disciplined working capital management, and reduced tax rates. As anticipated, the Q3 book-to-bill ratio fell below 1 due to ongoing sector challenges and high inventories. Nonetheless, management reaffirmed its FY24 guidance at the lower end of EUR 605m ± 20m in sales with a 25% EBIT margin, aligning with mwb research’s estimates and solidifying the BUY recommendation and an unchanged PT of EUR 100.00. CEO Dr. Arne Schneider will provide further insights at the mwb research German Select online conference on 3 December, interested investors are invited to register https://researchhub.de/events/registration/2024-12-03-13-00/ELG-GR.The full update can be downloaded under https://research-hub.de/companies/Elmos%20Semiconductor%20SE