Mytaste Group: First comment Q1, strong start of April2018-05-17 16:55, Edited at: 2018-05-17 17:01
Today Mytaste Group (earlier myTaste) released their report for the first quarter of 2018. The sales were in-line with our projections, but with lower profitability, all of the synergies from the earlier acquisitions were yet to materialize in the quarterly figures. April has started well with an EBITDA exceeding the profit for the first quarter. We will look into our projections but do not expected to make any larger adjustments following the report.
During the first quarter, the Mytaste Group has focused on the integration of last year's acquisition into the Group as well as maximizing costs and costs revenue synergies. The sales figure was in line with our projections but with lower profitability. When we read the CEO comment, we find it likely that all of the synergies from the earlier acquisitions was not yet materialize in the quarterly figures. One of the most important notes in the report was that April had started well with an EBITDA exceeding the profit for the first quarter; as such we find it likely with increased earnings in the coming periods.
The Shopello segment has now been renamed to Mytaste Shopping. The business unit produced net sales of SEK 8.51m and EBITDA of SEK 1.9m; this is a significant improvement from last year which was driven by the earlier acquisitions. The in-house development has intensified, and a set of new products will be launched during Q2 and the rest of the year.
MytasteFood & Beverage, earlier named myTaste, had net sales of SEK 3.46m with an EBITDA of SEK 0.99m. Vinklubben had another strong quarter. The company has launched a new social media package and a new version of the mobile app. The company expects to see a strong second quarter from Vinklubben. work regarding the new digital ad network named “Smakligt!” continues, and the company states that the launch of sponsored recipes has worked out well.
As earlier communicated, Andreas Friis will take on the position as the Group CEO. Jonas Söderqvist will take up Andreas previous role as COO. Andreas will focus on marketing the myTast Group and its network of sites in the context of the new focus towards e-commerce. We find that Mytaste Group continues to develop in the right direction, and the strong figures during April are a clear sign that we should see improving profitability ahead. Our current Base-case stand at 5.4 SEK per share.
Also, watch our CEO interview [in Swedish] with Andreas Friis following the Q1 report for 2018.
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