Cantourage Group SE: Strategic Shift to Protect Margins Amid Market Pressures

Cantourage Group SE has maintained its "BUY" recommendation despite a challenging Q3 marked by a sales decline of 2% year-on-year and 9% quarter-on-quarter. The firm has strategically prioritized protecting its margins over sheer volume, an approach reflected in its improved EBITDA of €1.9m from a negative €2.2m the previous year. The margin enhancement, however, was offset by a 20.5 percentage point drop amid regulatory shifts in the UK and German price pressures.

Domestic sales in Germany dropped to €9.5m with increased market competition and price cuts affecting premium cannabis products. In the UK, new regulations temporarily reduced sales to €9.3m but are expected to benefit Cantourage from Q4. Meanwhile, in Poland, deliberate volume restrictions helped maintain higher margins, despite halved sales.

Efforts to expand their product range, including their own brand and new certified suppliers, partially mitigated reliance on third-party products. Despite adjustments in fiscal targets pointing to lower ends, a return to growth is anticipated for 2027.