Einhell Germany AG Ups Guidance Following Strong Q3 Performance

Einhell Germany AG has shown robust performance in Q3, exceeding expectations with a significant increase in sales, and subsequently raising its full-year guidance. The company's Q3 sales rose by 15% year-on-year, reaching €264 million, driven largely by the demand for Power X-Change products. While the EBIT figures for the quarter are still pending, estimates suggest an increase to €23.9 million, equating to a 9.1% margin.

The company attributes the sales boost to its Power X-Change line, known for its high gross margins. Despite rising personnel and operational expenses, including higher freight costs due to geopolitical tensions and increased marketing expenditure linked to partnerships with high-profile sports teams, Einhell's outlook remains positive.

Einhell has adjusted its fiscal year 2024 guidance, projecting sales of €1,070 million and an EBT margin between 8.0-8.5%. The increased forecast aligns with the company's strategic growth aims, particularly as it eyes expansion into the US market. Reinforcing its positive stance, NuWays AG reiterates a "Buy" recommendation, setting the target price at €86.