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NoHo Partners: March sales EUR 4.2m, cash position strengthened - Nordea

NoHo released March sales figures that were roughly 20% of corresponding period in 2019. March sales were approximately EUR 4.2m, above our estimate of EUR ~2m. Hence, Q1 sales approximately EUR 20m (Nordea EUR 18m). Nearly half of the turnover consisted of sales in the first week of March, when restaurants were still open in Finland. March operating cash flow was negative by a clear margin, but the company expects to receive some compensation from the Finnish state at a later stage.

The company is preparing for the gradual opening of its business starting from the beginning of May (as indicated in Helsingin Sanomat article on 7 April). Due to unstable market conditions and unknown government decision making, short-term liquidity has been strengthened by selling part of NoHo’s Eezy stake.

We have been expecting a gradual opening of Finnish restaurants from June with a fast recovery due to pent-up demand. Restri ctions on Finnish restaurants should be lifted on 18 April, while there has been vast debate about how government will restrict opening hours. If restaurants have to close by 6pm, we do not expect meaningful reopening’s. If restaurants can serve until 10pm, we would expect NoHo to open most of its food restaurants and terraces.
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