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Third party research

DistIT: Signs of improvement on the horizon - ABG

DistIT

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

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Minor estimate changes in absolute terms
Restructuring likely to carry full effect in H2'25e
'25e-'26e EV/EBIT of 18x-9x


Solid performance despite cyberattack

While Q3 remained challenging due to unfavourable market conditions for consumer electronics, DistIT performed relatively well given that it was also subject to a cyberattack. Adjusting for FX and the cyberattack, DistIT's group EBIT was ~8m better than we expected, thanks to the strong cost control. While the company is continuing to release working capital, mostly due to its SKU rationalisation, we believe that there is some more potential for additional working capital release. In the near term, it is likely that organic growth will be held back by efforts to improve cash flow, but we see potential for a return to growth once the cash flow situation improves.
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