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Original-Research: DO & CO AG - from NuWays AG

27.06.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to DO & CO AG

Company Name: DO & CO AG

ISIN: AT0000818802

Reason for the research: Update

Recommendation: Buy

from: 27.06.2025

Target price: EUR 235.00

Target price on sight of: 12 month

Last rating change:

Analyst: Henry Wendisch

FY'24/25 targets reached and dividend resumed; chg. analyst

Topic: DOC has recently reported FY'24/25 results and resumed its dividend

payment after many years.

In detail:

In Q4, sales rose by 14% yoy to EUR 524m, particularly driven by Airline

Catering (+18% yoy, 85% of sales) and Restaurants, Lounges and Hotels (+9%

yoy; 8% of sales). The International Event Catering segment decreased

against a tough comparable base by 19% yoy (7% of sales), but neverthele

showed a sound development throughout FY'24/25 (+6% yoy sales growth).

Consequently, DOC's FY24/25 sales arrived at EUR 2.3bn (+26% yoy) and thus at

the upper end of the sales guidance (EUR 2.25-2.3bn). Mind you, the strong

growth should have mainly stemmed from past tender wins (EUR 400m additional

sales or 22% sales growth) whereas the remaining 4% sales growth (ex

customer wins) were driven by higher passenger numbers and slight price

increases. On profitability, DOC has reached its 8% FY EBIT margin target to

the point (Q4: 8.5% EBIT margin).

Against this backdrop, DOC continued to deleverage, paying back a total of EUR

150m debt last fiscal year. On the back of a strong EUR 106m FCF, the net debt

position thus decreased from EUR 218m to EUR 170m (0.6x EBITDA). In light of

this, management proposed a EUR 2.00 DPS (EUR 22m payout; 24% payout ratio) to

be paid in two weeks. Mind you, last year's dividend was scrapped despite a

record profit only as a precautionary measure to not violate COVID aid

conditions.

For FY'25/26e we expect sales to continue to grow by 8% yoy to EUR 2.5bn. Thi

is based on further tender wins and market share gains to the tune of EUR

60-80m, explaining 4% sales growth already. The transatlantic routes are of

great importance for DOC (c. 40% of sales). Now, the recent US recession

fears have eased further (Powell: „US economy in solid position“). Mind you,

the ongoing aircraft shortages also means that airlines deploy their plane

on routes with higher demand, which stabilizes overall passenger dynamic

(IATA expects +4% yoy global passenger growth in '25). Based on all this, we

feel confident about our overall sales growth estimate.

Against this backdrop, the recent negative share price reaction seemed

unjustified. Albeit a solid recovery from the trough at EUR 130 per share, DOC

currently still offers an attractive entry opportunity with a 34% upside

potential to our DCF based PT of EUR 234. - change in analyst -

You can download the research here: http://www.more-ir.de/d/32916.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2161500 27.06.2025 CET/CEST

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