Cantourage Group SE: Strong Q3 Performance Despite Regulatory Challenges

Cantourage Group SE reported a significant surge in Q3 sales, achieving a 52% increase to €20 million, fueled by robust international expansion. However, regulatory uncertainties and pricing pressures in Germany have impacted margins. Despite these challenges, the "Buy" recommendation remains with a target price of €10.50.

Year-to-date sales reached €74.9 million, up 148% year-on-year. EBITDA for the first nine months stood at €3.9 million, marking an 86% increase year-on-year. While market expectations for full-year sales are set at €87 million, EBITDA projections have been adjusted to €4.9 million due to anticipated pressures.

The ongoing evaluation of telemedicine and mail-order cannabis prescriptions by the Federal Ministry of Health could affect market dynamics. Nevertheless, Cantourage's strategic expansion in the UK, Poland, and entry into Spain and Italy aims to mitigate German market dependencies.