Operations remain strong. Cantourage released preliminary Q2 sales of € 27.9m, implying a 158% yoy increase. H1 sales of € 53.5m already exceed 2024 FY sales of € 51m. With this the company remains on track to reach our € 100m sales estimate for FY25e (so far no guidance issued by management), if not exceed it. Worth highlighting, sales in June came in weaker than expected due to temporary export restrictions in Portugal, which host the group’s largest processing capacities. Demand for the product across the company’s key end markets continued to exceed supply.

While Cantourage did not release preliminary profitability KPIs, we would expect the EBITDA margin to be largely in line with Q1, for which the company announced 11-13%. As a result, we regard our FY25 estimate of 10.3% as rather conservative.

CEO’s temporary leave with no impact on operations. CEO Philip Schetter has informed the supervisory board that, for personal reasons, he will be unable to perform his executive duties until further notice. A full return to work is planned. In order to ensure continuity, the supervisory board appointed Patrick Hoffmann as interim CEO effective immediately until the end of the year. Importantly, Patrick Hoffman is part of the founding team of Cantourage and a member of the supervisory board which is why we expect a smooth transition and no operational disruptions.

Impact from potentially tightening regulation of telemedicine platforms limited. In particular, asynchronous telemedicine has been receiving increasing criticism as patients are able to get an initial prescription by entering data online without having to speak to a doctor. Hence, politicians are calling for tighter regulation of the process, such as an in-person appointment for the initial prescription. While Cantourage’s own telemedicine platform already meets high standards, potential changes could quickly be implemented.

Share price de-coupled from fundamentals. Cantourage is seen fully on track to reach and potentially even exceed € 100m sales (almost 100% growth yoy) and 10% EBITDA margin this year.

Further, the demand for flowers still outgrows supply, which indicates further growth going forward.

Yet, the valuation remains attractive with shares trading at an unjustified 5.4x EV/EBITDA multiple. We hence confirm our BUY rating with an unchanged € 13 PT based on DCF and add Cantourage to the NuWays Alpha list.