NUF’s stub result points to a healthy start to FY21, with all regions posting revenue growth in October and management noting performance improvement efforts remain on track. As detailed in our post results note (link), execution is likely to remain the primary driver of stock performance, particularly for the European segment. While significant lifting remains to be done here, NUF’s disclosed -A$2mn of EU SG&A savings in the stub period is an encouraging step (run rate equivalent to a ~2% reduction in FY20 segment expenses). Our views remain largely unchanged on today’s update, and we remain Buy rated. We make minimal estimate changes (c.1% FY21/22/23E EBITDA) on today’s update and slightly raise our 12-month target price to A$5.40 (A$5.30 prior).
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