Dadelo. Strong omnichannel sales momentum, development costs drag on profitability.
Focus on scaling the business will weigh on performance in the coming years. Central to DAD's value creation at the moment is scaling the business. Q3 results are in line with this scenario, and for the full year we now see room to exceed PLN 180mn in revenue (+55% y/y).
Moreover, we assume that the company is selectively benefiting from overstocking the market by selectively 'picking up' the overhang of stock from distributors and manufacturers at attractive discounts.
In the quarters ahead, we expect inventory to grow as the company seeks to take advantage of further difficulties from competitors, while at the same time, high sales momentum should not exacerbate store rotation. In contrast, GM may erode further.
