BWMX: Snapping the Catalog: Spring Brings Excitement; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog. While the YoY comparisons in SKUs become more difficult, Betterware continues to roll in new items and upgrades to key favorites to remain fresh and vital to their core customer base. Further, May saw the first round of the fruits of their recent sponsorship of Mexico's Summer Olympics team and continued expansion of key licensed characters. May also registe

Duplicate of BWMX: 1Q Review: In-Line Q, With Multiple Positives (Updated); Reiterate Buy

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results. Further, management reiterated 2024 revenue and EBITDA guidance. There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates. JAFRA Mexico also registered another strong quarter, as the acquisition has remained a key winner.

BWMX: 1Q Review: In-Line Q, With Multiple Positives; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results. Further, management reiterated 2024 EBITDA guidance and increased the upper end of the revenue range. There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates. JAFRA Mexico also registered another strong quarter, as the ac

BWMX: 1Q Preview: Moving to the Offensive; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday. We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we r

BWMX: Snapping the Catalog: Remain On Trend in April; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog. While the level of newness declined, perhaps due to the shifting Easter Holiday, the key positive trends remain, from higher YoY SKU levels, continued emphasis on full price selling, expansion into innovative adjacent categories and leveraging an improving supply chain to offer values in a still somewhat inflationary environment. As such, we remain upbeat on the potential

BWMX: Snapping the Catalog: 1Q Registered Progress; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the March catalog. March completed a 1Q with material YoY positives, from higher SKU counts, rising cadence of new and debuting products, a return of key favorites and continued reductions in overall discounting levels. We believe Betterware management has been able to capitalize on the return to normalcy for their supply chain to roll out compelling new items, offer normalized pricing

BWMX: Blowout 4Q, Dividend Raise Demonstrates Power of Model; Raising PT & EPS

We are raising our price target for BWMX to $22.50 (from $17) increasing our 2024 top and bottom line projections and rolling out 2025 projections after Betterware de Mexico registered 4Q upside on virtually every level, with the Betterware division returning to YoY top line growth for the first time in eight quarters, and 9.6% YoY revenue growth for JAFRA Mexico with materially better than expected margins. The company continued to reduce overall debt levels and raised the dividend rate by 25%,

BWMX: Snapping the Catalog: Moving from Strength to Strength; Reiterate Buy, PT

We are reiterating our Buy rating, $17 price target and projections for Betterware de Mexico after reviewing the February catalog. We believe February was a continuation of multiple positive trends which increasingly convince us the division is on a solid path to return to positive top line growth: 1) strong YoY expansion of SKUs; 2) further reductions in overall discounting; and 3) continued new product excitement, from pet's to kids and Spring cleaning, Betterware continues to offer innovative

BWMX: Snapping the Catalog: On the Offensive in 2024; Reiterate Buy, $17 PT

We are reiterating our Buy rating, projections and price target after reviewing the Betterware January 2024 catalog. While January represents one of the easiest comparisons in terms of catalog metrics, Betterware rolled out a record level of SKUs, punctuated by material newness and the ability to leverage the supply chain to return a high number of key favorites from prior periods. Further, after a discount driven September (over 70% of items on sale), management has continued to reduce the over

BWMX: 2024 Signposts: Putting All the Pieces in Place; Reiterate Buy, $17 PT

We are reiterating our Buy rating, $17 price target and projections for Betterware as we look at the year ahead. We believe Betterware, with the namesake division revamped and set to register YoY revenue growth in 4Q23 is poised to once again register the strong, consistent returns which the COV-19 driven environment ups and downs occluded. Further, we believe there remain multiple key catalysts beyond the return to growth at Betterware Mexico, from continued multiple upgrades at JAFRA, the star

BWMX: Snapping the Catalog; Ending 2023 on a High Note; Reiterate Buy, $17 PT

We are reiterating our Buy rating, $17 price target and projections after reviewing Betterware de Mexico's December catalog, which offered record SKU levels and continues to raise the bar in terms of offerings. Further, management remains focused on offering solid values, with pricing down YoY, but lower levels of discounting, as the company takes advantage of gains in the supply chain and overall logistics. Management has also continued to focus on key new categories, such as Kid's while combin

Hybridan Small Cap Feast - 28 May 24

28th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: Accrol Group Holdings (ACRL.L) has left AIM. China Nonferrous Gold Limited (CNG.L) has left AIM. What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 7th May: Time To ACT plc, an engineering business focused o

SSP Group+ (SSPG, House Stock at 209p) - Interim results demonstrate significant progress; forecasts maintained

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

PROGRESSIVE: DP Poland: Management delivery

DP Poland is a UK-quoted means to gain exposure to the roll-out potential of the world-leading Domino’s Pizza brand in relatively stable and growing economies. DP Poland is the master-franchisee for Domino’s Pizza in Poland and Croatia. Although DP Poland has built a pizza company, only since the August 2022 arrival of CEO Nils Gornall, with his many years of experience as a ‘Dominoid’, has it truly started building a Domino’s Pizza company. Results have improved significantly, and DP Poland is

Domino's Pizza - Growing the base

Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.

Tortilla Mexican Grill - Cracking on

Notwithstanding its sector ‘sweet spot’ (a healthy, customisable product at a competitive price), Tortilla Mexican Grill (Tortilla) has taken the opportunity of a change in management to refine its strategy to address challenges since its successful IPO in 2021 as well as expedite growth. Significant benefit is expected from a new delivery structure to mitigate commission charges in an important part of the business (c 30% of sales), from enhanced marketing to tackle surprisingly low brand aware

Brighton Pier Group - Sweating the assets

The popularity of Brighton Pier Group’s (BPG’s) diversified low-ticket leisure offer underpins confidence in a significant bounce back from its FY23 ‘annus horribilis’ as well as in potential benefits from new initiatives, notably a £1 admission fee to the Palace Pier (annually over four million visitors as a free attraction) during key summer trading for non-residents of Brighton. The coincidence in FY23 of harsh weather, train strikes and protracted disruption from a fire near the company’s mo

Hybridan Small Cap Feast - 9 April 2024

9th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Helix Exploration (HEX.L) a helium exploration company with operations in Montana, USA announces admission of its Ordinary Shares to trading on the AIM market of the London Stock Exchange. An Oversubscribed placing with book of demand over £22m to raise gross proceeds of

Topps Group (TPT LN) - Interim results & updated strategy

Topps Group has announced its interim results to March period end highlighting a good relative performance against a tough backdrop as sales fell 5.8% yoy to £122.8m versus c. 10-15% for the wider market, according to management. Adj. PBT of £3.1m is down 30% yoy and covers 40% of Zeus’s FY24 forecast, implying Topps will need to see some improvement in the operating environment to meet current estimates, which Zeus keep unchanged. The big news comes from the updated ‘Mission 365’ strategy, whic

PROGRESSIVE: Vertu Motors: Smoother roads ahead

The results for the year ended 29 February released today show a robust performance across a difficult year, but they also provide good grounds for optimism. Revenue of £4,720m was a 17.6% advance on FY23, helped by the successful acquisition of Helston in FY23. Underlying operating profit of £59.3m was a 21.5% improvement on the £48.8m achieved in FY23. The net debt (pre-leases) result of £(54.0)m, vs our estimate £(62.0)m and FY23 £(75.3)m, is impressive. Encouragingly the recommended dividend

Marks & Spencer+ (MKS, House Stock, 274p) - These are not just results - these are M&S results - more upgrades!

Rapid innovation within very tight parameters

Photo-Me is something of a paradox – although it is a £600m market cap business, it still operates as if it were a nascent entrepreneurial business. It is risk averse and yet highly innovative. Its strength derives from the interaction between three core capabilities - building durable relationships with retail site owners, strong management of technology and product development, and delivery of operational logistics excellence. This note describes the Group’s positioning, and the core investmen

Initial Equity Trading Comments - 19 February 2024

Photo-Me - Laundry continues on growth path

H1 results show continued strong growth in Laundry and a faster than expected recovery in Japan but slower B2B and third party sales in the UK. These later two points are expected to improve in H2 and guidance for the full year is maintained but there is clearly some risk here. We retain our target price of 183p based on a 5% FY 2019E free cash flow yield.

ME Group - Rolling out the next generation of photobooths

ME Group has reported a strong financial performance in FY 2022 (to October) driven by a significant increase in demand for instant vending services in the Photobooth and Laundry businesses, primarily in Continental Europe and the UK & Republic of Ireland. Profitability benefited from the recovery in demand, restructuring to remove unprofitable machines and higher pricing. Sales were up +21%, EBITDA +30% and adj. PBT +76%. Net cash was £34m at October 2022. The Group plans to roll out 10k next g