Nabaltec — Tighter margin in Q1, but guidance confirmed

Nabaltec confirmed its FY24 results and released preliminary Q125 results. FY24 results were in line with previously announced provisional figures, showing top-line revenue growth of 1.7% y-o-y to €203.6m, in line with our estimate of €204m but just short of management guidance of 2–4% growth. Nabaltec achieved a 10.8% FY24 EBIT margin, exceeding its target of 8–10%. The preliminary Q125 results show a 1.2% increase in revenue in what is described as a ‘persistently challenging market’. These challenges seem to be primarily driven by price and margin, rather than volume. The EBIT margin in Q125 was 7.5%, within the lower bottom end of Nabaltec’s FY25 guidance of 7–9%, which was reiterated alongside full year revenue growth of 3–5%. Price increases implemented at the start of Q2 should offset some energy costs and other inflation to insulate margins. Our forecast and valuation are under review.