Nokian Panimo - Brewing profitable growth
We initiate coverage of Nokian Panimo with a target price of EUR 2.7 and an ACCUMULATE rating. The company is well- positioned to advance its organic growth strategy, supported by a clearly defined investment plan.
A leading player in the Finnish microbrewery market
Nokian Panimo is a leading Finnish microbrewery with a long history by industry standards and a proven track record of profitable organic growth. Following its March IPO, the company is well positioned to expand its operations and strengthen its presence in the Finnish beverage market. Its diverse portfolio features more than 40 beverages, most notably the Keisari beers and Sun’n soft drinks. All production is centralized at the company’s facility in Nokia, Finland. Between 2019 and 2024, Nokian Panimo has delivered a CAGR exceeding 14%, while maintaining strong profitability in the microbrewery sector, which typically faces margin pressures.
Growth strategy supported by capacity investments
Nokian Panimo targets a revenue of EUR 20 million by 2029 (2024: EUR 11.9 million). To achieve this, the company has outlined investments of approximately EUR 10 million to increase production capacity, enhance efficiency, and support sustainability. In addition, the company is exploring other investment opportunities to strengthen its competitiveness. These investments are expected to raise the brewery’s beer production capacity to over 12 million liters by 2029. In our view, investments in capacity expansion are the most critical, as they enable the company to meet growing demand and avoid potential sales losses due to capacity constraints.
Accumulate with a TP of 2.7
We initiate coverage of Nokian Panimo with an ACCUMULATE rating and a target price of EUR 2.7. Nokian Panimo currently trades at an EV/EBITDA range of 9-7x and an EV/Sales range of 1.6-1.4x based on our 2025–2026 estimates, broadly in line with peers. Our target price implies EV/EBITDA multiples of 10-8x and EV/Sales multiples of 1.8-1.6x for the same period, which we consider justified given the company’s favorable growth trajectory and margin profile. The fair value derived from our DCF model aligns closely with the target price, supporting our outlook.