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Third party research

Gentoo Media: Big Q1 miss as Brazil weighs heavy - ABG

Gentoo Media

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

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Q1 sales 20% below cons, partly driven by Brazil impact
Adj. EBITDA -39% y-o-y driven by sales miss and op. leverage
'25 guidance implies ~15-20% cuts to cons '25e EBITDA


Q1: weak top line explaining large earnings miss

Gentoo reported Q1 sales of EUR 25m, which is down 11% y-o-y and -27% q-o-q (albeit on tough q-o-q comps), 20-22% below ABGSCe and Factset cons, respectively. The soft Q1 sales is impacted by market headwinds in Brazil and a shift away from lower value activities, where it appears like the Brazil impact was larger than the company initially expected — G2M expected double-digit revenue growth for '25 in the Q4 report, which now is downgraded to flat y-o-y. Opex came in slightly better than we and consensus expected, but given the operating leverage on the big sales miss, Q1 adj. EBITDA was 44-39% below ABGSCe and cons.
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