Cantourage Group: Q3 review; Quality over quantity; FY guidance at lower ends - NuWays AG Research
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Cantourage Group: Q3 review; Quality over quantity; FY guidance at lower ends - NuWays AG Research

Sales came in at € 19.9m (-2% yoy, -9% qoq), while EBITDA swung to € 1.9m from € -2.2m in Q3'25 (Q2: € 2.9m). The margin improved by 20.5pp yoy to 9.5%, yet the weakest of the year (Q1: 10.6%, Q2: 13.1%). Besides German price pressure, this was due to the regulatory transition in the UK, which cost sales in a higher-margin market. Gross margin almost doubled to 35.3% (-1.1pp qoq). For 9M, sales fell 17% yoy to € 62.3m, yet EBITDA rose 74% to € 6.8m (10.9% margin vs. 5.2%). In short, Cantourage keeps choosing price over volume in an increasingly crowded market.

In sum, Q3 underpins that sacrificing volume to protect margins was the right decision in light of the significantly declining prices (notable oversupply). With headwinds in the UK already easing, recent EU-GMP certifications and a broadening product portfolio, the group should in our view be able to return to growth in 2027. The group's growing net cash position (€ 10.8m at the end of Sept.) is seen to support this.

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