Duell - A promising start to the year
Duell reported Q1 net sales at EUR 28.3m, just surpassing our forecast of EUR 27.5m, while adjusted EBITA reached EUR 0.7m, also higher than our prediction of EUR 0.5m. The performance in the Nordics was stronger than expected despite the late start of Nordic winter season.
- Duell’s Q1 net sales grew 4.7% y/y to EUR 28.3m (EUR 27.0m in Q1/24, EUR 27.5m Evli).
- Net sales in the Nordics amounted to EUR 15.3m (EUR 15.1m in Q1/24, EUR 14.9m Evli), in Rest of Europe net sales stood at EUR 13.0m (EUR 11.9m in Q1/24, EUR 12.5m Evli).
- Adj. EBITA in Q1 amounted to EUR 0.7m (EUR 0.3m in Q1/24, EUR 0.5m Evli). Duell’s gross margin increased from 23.9% in Q1/24 to 24.9%.
- Duell presented its consolidated income statement alongside the business review, revealing no significant deviations in operating expenses, majority of the positive delta in profitability vs. our estimates was due to better gross margin than expected.
- Duell also announced that it has completed the change negotiations that were announced in October. Targeted cost savings are approximately EUR 1m across the group and the savings will be spread over the last three quarters of the fiscal year 2025.
- Net debt was at EUR 24.7m at the end of the quarter, down from 45.2m in Q1/24, driven by the completed rights issue. Net debt was up compared to end of the fiscal year 2024 due to seasonality as the company’s inventory levels are typically higher in Q1 vs. Q4.
- Guidance 2025 (unchanged): Organic net sales with comparable currencies will be at the same level or higher than previous year. Adjusted EBITA to improve from last year’s level.