NoHo Partners: Guides for EUR 300m top line in 2022 and accelerating market for Q2 - Nordea

NoHo Partners reported Q1 EBIT of EUR -1.3m, +51% (EUR 1.3m) versus Infront consensus and 33% (EUR 0.3m) below Nordea. Q1 net sales were EUR 48.5m and came 6% above consensus and 1% above Nordea. Operational EBITDA (operating cash flow) was EUR +1.1m in Q1, while cash position was EUR 2.1m at the end of Q1 (EUR 6.4m at the end of Q4). Government grants were EUR 2.1m in Q1. April sales of EUR 28.9m were up 608% y/y (+36% on 2019 level), while the operational EBITDA was EUR 4.5m. The company expects May sales in the range of EUR 29-32m and operational EBITDA between EUR 4.5-5.5m. June sales are expected to be in the range of EUR 27-30m with operational EBITDA of EUR 3.5-4.5m. NoHo issued a new guidance for 2022 and is expecting around EUR 300m top line and around 7% EBIT margin in restaurant business. Infront consensus has expected EUR 286m sales and 7.6% EBIT margin. We believe the guidance includes uncertainties related to general economic situation, cost increases and availability of staff and view the guidance as conservative, especially when thinking profitability. The company expects market to accelerate in Q2 and to be relatively resilient to weakening purchasing power of domestic consumption. We expect consensus to maintain EBIT estimates largely intact.