Cantourage Group SE's Financial Performance Surpasses Expectations

Cantourage Group SE has exceeded market expectations for its FY25 EBITDA. By November, EBITDA reached €5.5 million, surpassing forecasts of €4.8 million. The third quarter saw lower profitability due to political uncertainties impacting prices in Germany. However, improved margins in the early Q4 indicate de-stocking has lessened and prices are stabilizing.

The company maintains an FY25 sales estimate of €89 million, with an adjusted EBITDA margin forecasted at 6.8%. Cantourage's ability to adapt its product mix towards high-margin strains and its growing presence in markets like the UK and Poland help mitigate German regulatory challenges.

Corporate governance is set to benefit from a new CFO starting in January and a 5-year extension for the CEO. The shares trade at a valuation of 0.4x EV/sales. The recommended target price remains at €10.50, backed by a DCF model.