Duell - A slightly softer quarter than expected
Duell reported Q1 net sales at EUR 25.0m, below our forecast of EUR 27.0, while adj. EBITA came in at EUR -0.1m, also below our estimate. Issues in France persisted and the slow start to the winter season affected sales in the Nordics.
- Duell’s Q1 net sales declined -11.7% y/y to EUR 25.0m (EUR 28.3m in Q1’25, EUR 27.0m Evli). Net sales with comparable FX declined -12.5%.
- Adj. EBITA in Q1 amounted to EUR -0.1m (EUR 0.7m in Q1’25, EUR 0.3m Evli). Duell’s gross margin decreased from 24.9% in Q1’25 to 24.1%. Relative OPEX remained largely in line with last year.
- Net sales in the Nordics were EUR 13.7m (Q1’25: EUR 15.3m), below our EUR 14.9m estimate. Net sales were affected by the slow start to the winter season, which weakened demand in the Nordics.
- In Rest of Europe, net sales declined to EUR 11.2m (EUR 13.0m in Q1’25, EUR 12.1m Evli). France remained a drag due to ongoing brand portfolio transition, prompting ongoing transformation measures.
- Cash flow from operating activities in Q1 was EUR -1.9m (Q1’25: EUR -4.8m).
- Net debt at the end of the period was at EUR 22.6m (Q1’25: EUR 24.7m), and LTM net debt/adj. EBITDA increased to 4.2x (Q1’25: 3.1x). The conditions for the covenants were met at the end of the review period.
- Net working capital decreased to EUR 51.6m (EUR 53.5m Q1’25) and inventories as % of LTM net sales increased to 39.7% from 38.4% in Q1’25.
- During the review period Duell advanced its ecommerce renewal and expansion, as well as the optimization related to logistics through the transfer of bicycle products from Tampere warehouse to Mustasaari and Tranås.
- Guidance for FY 2026 (unchanged): Duell expects organic net sales to remain at the same level as last year and adjusted EBITA to stay at the same level as last year.