Duell - Not all negative
Duell’s Q3 figures were anticipated to be weak following the profit warning. While profitability was below expectations, volumes exceeded our forecasts. In addition, developments in NWC, cash flow, and net debt were positives easing concerns related to leverage.
- Duell’s Q3 net sales grew 0.7% y/y to EUR 38.2m (EUR 37.9m in Q3/24, EUR 36.5m Evli). Net sales with comparable FX decreased -0.8%.
- Net sales in the Nordics amounted to EUR 18.7m, surpassing our estimate of EUR 17.5m. In Central Europe, net sales grew to EUR 19.5m (EUR 18.4m in Q3/24, EUR 19.0m Evli).
- Growth in European e-commerce space continued as the share of online sales amounted to 30% of total net sales in Q3/2025, up from 26% in Q3/2024.
- Adj. EBITA in Q3 amounted to EUR 2.1m (EUR 3.2m in Q3/24, EUR 2.6m Evli). Duell’s gross margin declined to 21.7% from 24.9% in Q3/24.
- The primary reason for the lower-than-estimated margin was the reduced gross margin which was likely affected by sales mix and NWC management.
- Cash level at the end of period was at EUR 5.9m (EUR 4.2m Q3/2024). Cash flow from operating activities for the quarter was EUR 8.0m, notably up from EUR 3.4m last year.
- Net working capital decreased to EUR 52.5m (EUR 57.7m Q3/24) and inventories as % of LTM net sales declined to 39.1% from 40.5% in Q3/24.
- Net debt was at EUR 21.6m at the end of the quarter (EUR 27.1m at the end of Q3/24), net debt to LTM adj. EBITDA was 3.4 (4.5) and the covenants were met.
- As communicated earlier, Duell lowered its guidance for FY 2025 as it now expects organic net sales with comparable currencies to be at the same level or lower as the previous year (prev. same level or higher). In terms of profitability, Duell expects adj. EBITA to be below last year’s level (prev. to improve from last year’s level).