FY25 on a strong growth path, sig. M&A underway; chg.

FY25 GMV increased by 44% yoy to € 1.3bn, slightly above our € 1.23bn estimate, confirming the group’s ability to scale its multi‑vertical platform model across B2B and B2C segments. Accordingly, sales grew by 39% yoy to € 728m (eNuW old: € 718m), landing in the upper half of the guidance range (€ 715-735m). Note, 63% of growth was organically thanks to an increased number of partners, an increased product assortment, high growth in consumer goods subsidiaries and freight goods and improved customer retention.

Adj. EBITDA improved by roughly 65% yoy to € 55m (reported EBITDA of € 71.2m), implying a margin of 7.6% (+1.3pp yoy) carried by an improved gross margin (+0.8pp yoy) due to less discount activities and higher provisions but also operational leverage and a lower marketing cost ratio. Here, the company should have begun reaping the gains from its “AI first + cost reduction program”. Bottom line, EPS came in at € 2.26 vs. € 1.60 in FY24.

The leverage ratio (ND/adj. EBITDA) further decreased to 2.2x, yet absolute net debt increased to ~ 120m as a result of the company’s acquisition strategy.

A first glance into FY26. For FY26, management expects to increase GMV to € 1.7bn, sales to € 1bn and adj. EBITDA to € 70-80m, while keeping leverage (ND/adj. EBITDA) within the range of 1.5-2.3x. Importantly, this is largely in line with our estimates and not yet including the planned acquisition of AEP.

Milestone acquisition underway. TPG announced its intention to acquire 100% of AEP GmbH, a Germany-based B2B pharmaceutical wholesaler and platform operator serving several thousand pharmacies. Subject to approval by the German Federal Cartel Office, closing is expected in Q2 2026. Following completion, AEP will be fully consolidated and form the backbone of a newly established segment, Pharma Group, alongside existing pharma-related activities such as ApoNow and apothekia. The new segment will feature € 1bn sales and € 25m adj. EBITDA. AEP alone should comprise some € 1bn sales and ~ € 22m adj. EBITDA. At an estimated purchase price of around € 75m (eNuW), this seems like a sensible acquisition, representing a transformational addition in terms of scale and business mix. If approved, the acquisition would put the company’s 2030 targets of € 3bn sales well in reach, in our view.

We reiterate our BUY rating and maintain our PT of € 21.00, based on DCF. -change of analyst-