Q.beyond AG Forecasts Profitable Growth Amid Strategic Initiatives

q.beyond AG is anticipated to see profitable growth following a challenging FY23. Efficiency enhancements have notably bolstered FY24, with an impressive 286% increase in EBITDA to €9.3 million. Management plans to release preliminary figures in early March, with a final report by month-end. Strategic goals include a continuous FCF expansion of €9.8 million, a positive net income of €2.1 million, and a mid-single-digit sales growth.

Key initiatives include focusing on essential verticals, increasing near- and off-shoring, and integrating AI across operations to drive margin expansion. Management anticipates closing at least one acquisition in FY25, potentially exploring new sectors like the public sector and energy.

The stock remains attractively valued at 3.1x EV/EBITDA FY25, with a target price maintained at €1.10. The outlook remains positive as operational improvements continue.