Ahead of Nelly Group's Q4 results (due: 2 February at 08.00 CET) we reiterate our financial forecasts and our DCF-based mid-point equity value of SEK 23 per share. This implies that we expect a marked y/y improvement in EBIT to SEK 18m (Q4/22: LBIT of SEK 2m). This reflects our assumptions for continuing focus on gross margins (PL share) and cost efficiencies (marketing, distribution), at the expense of sales (Q4E: -15% y/y), as changes to its offering are being implemented.
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