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Original-Research: DO & CO AG - from NuWays AG

27.06.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to DO & CO AG

Company Name: DO & CO AG
ISIN: AT0000818802

Reason for the research: Update
Recommendation: Buy
from: 27.06.2025
Target price: EUR 235.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

FY'24/25 targets reached and dividend resumed; chg. analyst

Topic: DOC has recently reported FY'24/25 results and resumed its dividend
payment after many years.
In detail:

In Q4, sales rose by 14% yoy to EUR 524m, particularly driven by Airline
Catering (+18% yoy, 85% of sales) and Restaurants, Lounges and Hotels (+9%
yoy; 8% of sales). The International Event Catering segment decreased
against a tough comparable base by 19% yoy (7% of sales), but nevertheless
showed a sound development throughout FY'24/25 (+6% yoy sales growth).
Consequently, DOC's FY24/25 sales arrived at EUR 2.3bn (+26% yoy) and thus at
the upper end of the sales guidance (EUR 2.25-2.3bn). Mind you, the strong
growth should have mainly stemmed from past tender wins (EUR 400m additional
sales or 22% sales growth) whereas the remaining 4% sales growth (ex
customer wins) were driven by higher passenger numbers and slight price
increases. On profitability, DOC has reached its 8% FY EBIT margin target to
the point (Q4: 8.5% EBIT margin).

Against this backdrop, DOC continued to deleverage, paying back a total of EUR
150m debt last fiscal year. On the back of a strong EUR 106m FCF, the net debt
position thus decreased from EUR 218m to EUR 170m (0.6x EBITDA). In light of
this, management proposed a EUR 2.00 DPS (EUR 22m payout; 24% payout ratio) to
be paid in two weeks. Mind you, last year's dividend was scrapped despite a
record profit only as a precautionary measure to not violate COVID aid
conditions.

For FY'25/26e we expect sales to continue to grow by 8% yoy to EUR 2.5bn. This
is based on further tender wins and market share gains to the tune of EUR
60-80m, explaining 4% sales growth already. The transatlantic routes are of
great importance for DOC (c. 40% of sales). Now, the recent US recession
fears have eased further (Powell: "US economy in solid position"). Mind you,
the ongoing aircraft shortages also means that airlines deploy their planes
on routes with higher demand, which stabilizes overall passenger dynamics
(IATA expects +4% yoy global passenger growth in '25). Based on all this, we
feel confident about our overall sales growth estimate.

Against this backdrop, the recent negative share price reaction seemed
unjustified. Albeit a solid recovery from the trough at EUR 130 per share, DOC
currently still offers an attractive entry opportunity with a 34% upside
potential to our DCF based PT of EUR 234. - change in analyst -

You can download the research here: http://www.more-ir.de/d/32916.pdf
For additional information visit our website:
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Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2161500 27.06.2025 CET/CEST

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