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Third party research

DistIT: Aurdel rightsizing to weigh on growth - ABG

DistIT

This is a third party research report and does not necessarily reflect our views or values

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We cut '25e-'26e EBITDA by 28-14%
Aurdel restructuring to yield improvements in '25e
'25e EV/EBIT of ~19x


Large restructuring in Aurdel ongoing

Q2 was similar to the previous quarter in the sense that the market for consumer electronics was tough. This was particularly reflected in Aurdel. That said, the report was broadly in line with our expectations on sales and slightly stronger on adj. EBIT. Aurdel is currently being restructured to a leaner organisation that is focused on selling its own brands rather than relying on external brands. This is likely to lead to improved gross margins, albeit at the expense of poor organic growth. However, in DistIT's case, cash flow generation is imperative, and therefore the trade-off between cash flow and organic growth makes sense.
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