While sales started off with continuously rough comps, the company states that it has seen continuous improvement throughout the quarter and saw y-o-y growth in June on EBITDA. Looking at June 2020, the company had not started to see the de-stocking effects which hampered Q3’20, which should speak for good momentum going in to Q3. While the gross margin is likely to be slightly weaker during H2 on the back of a higher share of System Frugt sales, we expect this to be compensated by scale, realising synergies as well as the lighter marketing budget, in turn leading to margin expansion and positive organic growth numbers again. Further, the CEO stated on the conference call that the M&A market is opening for them, with possible action already during H2’21.
Share trading at 22-16x EBITA on ‘21e-‘23
On the back of the report, we lower our sales by 2% and adj. EBITDA estimates by 5-4% for ‘22e-‘23e. On our estimates, the share is trading at an EV/EBITA adj. of 22x-16x ‘21e-‘23e, roughly in line with peers.