NoHo Partners: Net financial targets aim for profitable growth, especially internationally - Nordea

Late last night, NoHo Partners updated its financial targets for the strategy period 2025-2027. In its Finnish operations, the company now aims to reach net sales of EUR 400m by 2027, and to maintain the current EBIT margin level (2023: 10.5%). We currently model EUR 332m in net sales for Finland for 2027E, so the new target implies a 20% upside to that, or a 10% CAGR for 2024E-27. We believe that achieving the target might require acquisitions, but it seems achievable. For the international operations, NoHo aims for profitable growth and creating shareholder value, leaving numeric targets open. We now model a 6% international sales CAGR for 2025E-27E. We believe NoHo will focus on international growth through acquisitions and different strategic and options similar to the Better Burger Society ownership, and leaving the international targets open-ended leaves vast room for this. Moreover, NoHo lowered its net debt to operational EBITDA target from the current 3x to approximately 2x in the long term, which we view reasonable given the current debt structure and the aim to look for financing options outside debt. While we view the targets as achievable, leaving the international targets open-ended was somewhat disappointing to us, but we expect to hear more reasoning behind this at NoHo’s CMD today. However, given NoHo’s strong track record on executing targets, we expect a positive share price reaction today.