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Published on: April 21, 2022

Weaker end to year; outlook moderated to reflect broader consumer uncertainty

G4M has released its FY22 full-year trading update. Widely reported macroeconomic factors impacting consumer confidence have seen weaker-than-expected sales in February and March. While gross margin has remained strong, this has resulted in lower sales and EBITDA relative to consensus expectations. With overhead cost pressure compounding weaker consumer confidence, especially in H1 FY23E, we believe accordingly that it is prudent to revise outer year forecasts, summarised in the table below and detailed within this note. Strong stock levels will support G4M’s distribution capability, particularly in the new European distribution centres.

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