Humble Group: Eyes on Q2 for higher organic growth q-o-q - ABG
'25e-'27e adj. EBITA down 3% Already strong gross margin in Q1 can turn even stronger in H2 ~9x '25e EV/EBITA is ~40% below peers
ANNONS
Takeaways from the report
The Q1 report was characterised by slightly weaker organic growth than usual because the Easter holidays occurred mid-April (Q2) rather than Q1. We did not anticipate the Easter impact to be that significant, and we therefore put a somewhat higher weight on Q2 in terms of organic growth delivery. The gross margin was strong at roughly 32%, as some of the company's purchasing and shipping efficiencies have come into effect. However, the 9% y-o-y gross profit growth translated into 4% y-o-y adj. EBITA growth due to discretionary sales & marketing expenditure. In terms of cash flow, we did not see the latent working capital release that we had expected due to tax deferrals.
