Classification of NuWays AG to Cantourage Group SE

Company Name:	Cantourage Group SE
ISIN:	DE000A3DSV01
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 10
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q1 prelims confirm focus on profitable growth

Cantourage released preliminary Q1 2026 figures, showing revenue of € 20.6m and EBITDA of € 2.2m (margin: 10.6%). While the numbers broadly confirm the stabilisation thesis after a difficult H2 2025, the year-on-year read is complicated by an exceptionally strong Q1 2025 that benefited from the initial wave of demand following Germany's CanG legalisation.

On a sequential basis, the picture is clearly constructive. Revenue grew roughly 11% qoq versus Q4 2025, underpinning that the business has found its footing after the pricing-driven contraction seen through the summer and autumn of last year (in Germany). We regard this as evidence that Cantourage's deliberate pivot away from low-margin standard volumes toward premium positioning is beginning to bear fruit.

On profitability, the 10.6% EBITDA margin (€ 2.2m) represents a meaningful step up from FY25p (6.1%) and reinforces the view that gross margin protection through a deliberate shift in product mix (focus in premium flowers).

Geographically, the UK continues to grow in strategic importance, now representing 41.3% of revenues versus Germany's 51.5% (Poland with 7.3%). This convergence is a structural positive: it reduces Cantourage's dependency on a single regulatory environment and on the German price cycle, and provides a more resilient earnings base from which to grow. Going forward, the group's Germany exposure is seen to further decrease as management hinted at potential additional market entries into France, Spain and Italy during short to mid-term, supporting the company’s transition into a pan-European player.

Healthy balance sheet. With a net cash position of € 8.8m, the company is well equipped to finance its expansion plans, both geographical and product (e.g. new forms of administration). Importantly, the group's net cash should further grow thanks to positive cash flows and no direct need for significant capex, in our viw.

Valuation remains undemanding. The Sanity/Organigram transaction at ~4.2x EV/sales for a wholesale only, barely profitable business stands in contrast to Cantourage's ~0.7x EV/Sales FY26p with a clearly positive and growing EBITDA. The market continues to under-price both the operational trajectory and the de-risking of the regulatory overhang.

We confirm our BUY rating with an unchanged € 10 PT based on DCF.

You can download the research here: cantourage-group-se-2026-05-12-previewreview-en-ba42a
For additional information visit our website: https://www.nuways-ag.com/research

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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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