Yesterday, Delivery Hero (DH) published its annual report for FY23. While the company has been able to cut losses, it got on the verge of generating positive operating CF. At the same time, DH published Q1 2024 data, seeing an upturn in momentum. While Europe, MENA and Integrated Verticals (Dmarts) showed continued strong growth, Asia seems to be on track to recover from (post-)pandemic impacts. On the back of the positive results, the company upgraded its FY24 outlook for total segment revenue growth. mwb research’s analysts have adjusted their model and estimates to reflect the positive business trends, which prompts mwb research to increase the PT to EUR 52.00 (old: EUR 48.00) and reiterate to BUY. Given the positive share price development in the past weeks, profit-taking is not surprising. The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE

Final FY no surprise after strong prelims / chg. NFON published final FY 2023 figures, which were in line with the preliminary results published in early March. FY recurring revenues stood at € 77.1m, up 4.8% yoy at a continuously strong recurring revenue ratio of 93.7%. This was particularly driven by further key account gains as well as  [ … ]

Better than feared FY23; New product launch; chg Topic: EVDI reported better than feared final FY23 figures and published a guidance for FY24. Further, the company announced the launch of a new attractive call money product for both, existing and new clients. In detail: Sales of € 4.1m (-20% yoy) stemming from 13 financed projects (vs eN [ … ]

Vossloh's first-quarter performance was characterized by steady growth, with sales reaching EUR 269m, up almost 5% from the year-earlier level. While some segments such as Lifecycle Solutions and Tie Technologies flourished, others such as Fastening Systems were slightly down. Impressively, Q1 EBITDA increased by 15% yoy to EUR 31m and EBIT reached around EUR 18m, marking a decade high for Q1. Order intake remained robust and exceeded last year's levels, particularly in markets such as the USA and Italy. With an order backlog of more than EUR 800m, Vossloh's outlook for FY24 remains optimistic, with sales of EUR 1.16-1.26bn and EBIT of EUR 100-115m. With the Q1 print in, mwb research’s analysts see upside potential to their numbers and hence reiterate the BUY recommendation with an unchanged PT of EUR 52.00, implying a 18% upside. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

Kion Group’s Q1 2024 revenues beat consensus by a marginal 1%, while adj. EBIT was 4% better than expected on a better mix at new trucks business and healthy service business share. The top-line grew 3% yoy to EUR 2.86bn, as growth in the Industrial Trucks & Services (IT&S) business was largely offset by a decline in Supply Chain Solutions (SCS). However, order intake of EUR 2.44bn (+2% yoy) disappointed, falling short of consensus by 7% on lower truck bookings in the Americas, though intake in Asia Pacific was robust and that in EMEA was broadly stable. Amid expectations of mixed demand across regions, the company had issued cautious guidance for 2024, giving a wide yoy range for revenues (-2% to +5% yoy) and adj. EBIT (flat to +19% yoy; EUR 790m-EUR 940m), which it confirmed. mwb research’s analysts are optimistic on IT&S business benefitting from easing supply chain and agility measures and SCS’ margins improving upon the completion of lower-margin legacy projects (majority to be closed in 2024). mwb research confirms the price target of EUR 46.00 and HOLD rating on the stock. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

HelloFresh (HF) announced Q1 2024 numbers, reporting revenues of EUR 2.07bn (+3.8% yoy in constant currencies [c.c.]) and adjusted EBITDA (AEBITDA) of EUR 16.8m (-75% yoy). While revenues were c. 2% ahead of market expectations, AEBITDA beat consensus of c. EUR 4m by a considerable margin, largely reflecting a better mix following the ramp-up of its ready-to-eat (RTE) business. The meal kit category continued to moderate as expected; however, the young RTE business performed well in Q1. In terms of profitability, higher procurement costs and marketing spend weighed on AEBITDA and the margin (-2.5ppt to a mere 0.8%), which will also likely impact Q2 results. Despite management expecting a slowdown in revenue growth and a yoy dip in AEBITDA in Q2, HF reiterated its full-year guidance – revenue growth of 2%-8% yoy in c.c. and AEBITDA of EUR 350m-EUR 400m. HF has been making good progress in expanding its RTE business in international markets. While the prospects for this product category are promising, the company must show that the targeted efficiency gains are achievable on the scale envisaged. mwb research’s analysts reiterate their BUY rating at an unchanged price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/research/HelloFresh%20SE

BASF’s Q1 2024 results were a mixed bag. Sales missed consensus by 6%; however, the company surpassed market expectations by 6%, in terms of EBITDA (excluding special items [ex-SI]) on better fixed cost control. While sales fell 12% yoy to EUR 17.6bn owing to still muted prices, mwb research’s analysts note the pace of decline has moderated significantly. Notably, volumes grew 0.5% yoy after reporting several quarters of decline, giving confidence that BASF is gradually returning to growth. BASF remains optimistic of a recovery and confirmed its guidance for 2024 – EBITDA (ex-SI) to increase to EUR 8.0bn-EUR 8.6bn, up 8.2% yoy at the mid-point (2023: -29% yoy). Management plans to cut operating costs further (targets annual cost savings of EUR 2.1bn by 2026) and control capex and working capital investments. Other strategic initiatives, including the reduction of a stake in Wintershall Dea, are progressing well. mwb research’s analysts maintain a BUY rating at a revised PT of EUR 60.00 (vs EUR 58.50 previously). The analysts believe BASF will continue to remain a good dividend play, given management’s commitment to maintaining or increasing dividend (2023 yield: 6.6%).The full update can be downloaded under https://www.research-hub.de/companies/BASF%20SE

Redcare Pharmacy's Q1 24 results reveal robust sales growth, reaching EUR 560m, a 51% increase yoy. However, the momentum is slowing compared to previous quarters, with organic growth at 19%. The acquisition of Swiss MediService bolstered sales, but Rx sales in the DACH region (excluding MediService) only grew 7%. Because of increased marketing efforts, adjusted EBITDA margin improved slower than anticipated, reaching 2.1%, below mwb research est. of 3.2%. Full-year guidance remains steady, projecting sales of EUR 2.3-2.5bn and an EBITDA margin of 2-4%. The stock has already depreciated by 11%, with concerns over slowing momentum and potential increased marketing expenses. mwb research’s analysts adjust their estimates in order to account for the higher marketing spending, setting a new PT of EUR 114.00 (previously EUR 115.00). SELL. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

Wacker Chemie's Q1 results show sales in line with guidance at EUR 1,490m, with a 15% yoy decline attributed to lower prices, although sequential growth of 8% suggests a possible bottoming out of the cycle. EBITDA of EUR 172m was ahead of both guidance and consensus, supported by lower energy costs and efficiency measures. Sales growth was mixed across the segments, with Silicones and Polymers driving sequential growth, while Polysilicon saw significant yoy and sequential declines due to pricing pressure. EBITDA improvements were notable in all major businesses. The overall outlook is confirmed, with an upgrade for Silicones EBITDA margins. The Q1 results show the first faint signs of recovery. With mwb research’s estimates unchanged, the analysts reiterate their BUY recommendation with a price target of EUR 128.00. The full update can be downloaded under https://www.research-hub.de/companies/Wacker%20Chemie%20AG

Atoss Software AG published Q1 2024 results, showing a 16% yoy growth of total revenues to EUR 41.8m. The expected slowdown in top-line growth was driven by a 22% yoy decline of software license sales after last year’s extraordinary high license sales. However, cloud & subscription growth (+40% yoy) remained a key driver for Atoss. The Q1 EBIT increase of 21% yoy outpaced top-line growth, resulting in a 1.5pp expansion of EBIT-margin to 33.5%. However, management confirmed the 2024 outlook, expecting FY EBIT margin of around 30%. mwb research’s analysts are maintaining their estimates and thus their price target of EUR 229.00. Following the share price declines of recent weeks, the valuation has become somewhat more reasonable again, which is why mwb research is upgrading the rating from SELL to HOLD. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20AG