Report
Chris Wickham

European growth prospects rise in importance

Ultimate Products released FY2024 results which confirmed the company’s August trading statement at the sales, EBITDA pre-tax profits and EPS levels.

Detailed figures for sales by geographic region, brand, distribution channel and product category were published. Importantly, European sales advanced by 7%, moving to 34% of group sales from 30% in FY2023 as the company made significant advances with French and German discounters. This offset the negative impact of overstocking in the latter’s supermarket channels.

ULTP’s sales outlook for FY2025 is a return to growth. First, we expect a home market rebound as the company no longer faces the air fryers comparison issue. Second, there are clear signs that the Salter re-brand is working well and there will probably be some early benefits from a similar uplift for Beldray. Third, Europe should see further advances arising from the Paris showroom’s stronger sales into European discounters and more normal German supermarkets trading. However, the pattern of order flows suggests growth will pivot significantly towards the second half of the year.

We highlight UPs superior yield and attractive FY2025 0.8x EV/sales ratio. We continue to highlight potential for a material re-rating of the shares, driven partly by a return to positive sales momentum this year. We retain our 200p/share Fair Value.
Underlying
Up Global Sourcing Holdings

Up Global Sourcing Holdings is a supplier of household products to global markets. Co. is the owner, manager, designer and developer of a range of consumer goods brands, focused on the home. Co. sources, imports and sells products across a range of categories including small domestic appliances, audio, laundry, housewares, heating and cooling and luggage.

Provider
Equity Development
Equity Development

​Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.

Analysts
Chris Wickham

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