Final FY25 out, AEP acquisition to transform the group; chg.

Consumer Goods remained the group's growth engine, with revenue up 55% yoy to € 458m and adj. EBITDA up 65% to € 35.6m, accounting for 65% of group earnings. The newly established Optics & Hearing segment, added mid-year, made an immediately disproportionate earnings contribution, posting a ~25% adj. EBITDA margin in its first half-year of consolidation. All remaining segments grew both revenue and earnings yoy.

FY26 guidance confirmed. Management guides for € 1.7bn GMV (eNuW: € 1.71bn), € 1.0bn revenue (eNuW: € 977m) and € 70-80m adj. EBITDA (eNuW: € 74m).

The more significant story for 2026 is the pending acquisition of AEP GmbH, a B2B pharmaceutical wholesale platform generating over € 1bn in revenue. Signed in January, the deal received German Federal Cartel Office clearance at the end of March. Closing is expected by end of Q2 2026, subject to the completion of outstanding contractual conditions. Financing, to be structured as a combination of own funds and debt over a 3-5 year horizon, remains the key outstanding item, with details expected by end of May.

The transformative nature of the deal is hard to overstate. Upon closing, TPG intends to bundle AEP with its existing pharma assets (ApoNow, apothekia, Doc.Green) into a standalone Pharma Group with dedicated management. On a pro-forma basis, the acquisition would lift FY26e group revenue to ~€ 2bn, adj. EBITDA to € 90-100m, and GMV to ~€ 3bn. The combined pharma segment alone is expected to generate revenues in excess of € 1.1bn and adj. EBITDA of >€ 25m. Once closed, the acquisition would hence put the company’s 2030 targets of € 3bn sales well in reach, in our view.

The investment case remains fully intact, yet shares paint a different picture with an implied valuation on only 2x EV/EBITDA. In our view, the group is adequately financed and able to comfortably service its debt obligations. ND/EBITDA remains within the targeted range, op. cash flow is strong and interest obligation can comfortably be paid by operations.

We confirm our BUY rating with a new € 17 PT (old: € 21) based on DCF as we trim estimates to account for the declining consumer sentiment in Germany, adjust the tax rate and a higher risk free rate.