Einhell Germany AG FY24 Guidance Confirmed Amid Solid Q2 Performance

NuWays AG's update on Einhell Germany AG maintains a "Buy" recommendation with a target price point of €227. The research highlights that Einhell's preliminary Q2 figures are consistent with expectations, reinforcing their FY24 guidance.

Einhell's sales from January to May 2024 amounted to €478.2m, marking an 11.6% increase year-over-year. For the first half of 2024, sales are projected to be around €565m, reflecting a 7.4% year-over-year growth. The estimated EBT margin stands at 8.5%, slightly lower by 10 basis points compared to the previous year.

Management anticipates Q2 sales growth of 6.9% year-over-year, reaching approximately €295m, primarily driven by strong demand for Power X-Change products. The EBT is estimated to have increased by 4% year-over-year to around €25m.

Despite some inflationary pressures on costs and higher personnel expenses due to recent acquisitions in Thailand and Vietnam, Einhell's EBT margin in H1 2024 shows a substantial improvement from pre-Covid levels. The company also confirmed its FY24 guidance of 6% sales growth, targeting around €1,030m in sales and an EBT margin at the upper end of their forecasted range.