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Mrkt BUZZ Zinzino: Signs of synergies being realised

6 Jul 2022

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Mrkt BUZZ Zinzino, July 6 2022


Equity Research Zinzino

Yesterday (July 5 2022), Zinzino reported a preliminary sales figure for Q2 2022 of SEK 326.7 million for the Group. That represents a growth of 1.3 per cent. At a group level, the preliminary sales figure was in line with our estimates set after the preliminary sales figures for May were released.

The table above shows that the Nordic region continues to hold back growth. A large event was held in Oslo this past week with around 1,900 sales partners attending. That could possibly be the start of a turnaround. It is also worth noting that both Central Europe and North America are growing at a high rate. That is an indication that relaxed Covid restrictions are supporting sales. The high and resuming growth in Central Europe may also signal that sales synergies from the recent acquisition of Enhanzz Global AG and Enhanzz IP AG are already starting to be realised.

Encouragingly, the year-on-year growth rate in Eastern Europe, the company’s largest market, is again positive and accelerating in June. On the other hand, average growth in the last three months in APAC has been a tepid 2.4 per cent, and the region continues to be weighed down by Covid restrictions. For the case, both Europe and Asia must grow. Over time, we are not concerned that a recovery in APAC will not materialise.


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Mrkt BUZZ Zinzino: Signs of synergies being realised