Original-Research: Cantourage Group SE (von NuWays AG): BUY

Classification of NuWays AG to Cantourage Group SE

Regulatory uncertainty and oversupply weighing on momentum

Cantourage remains on a stable growth trajectory, supported by strong international momentum and continued demand in its home-turf Germany. Despite intensifying pricing pressures in certain market segments, especially the low and mid price segment, due to a strongly increased offering from several competitors, management continues to expect high growth. Yet, the company has not issued a concrete FY guidance; eNuW: € 89m, +72% yoy.

At the same time, regulatory uncertainty is beginning to weigh on sentiment. The Federal Ministry of Health is currently evaluating measures that could restrict telemedicine-based cannabis prescriptions and limit the mail-order distribution channel. While the direct impact would be limited (telecan has no notable top-line contribution), these proposals, if enacted, may constrain access for patients and impact sector dynamics. Due to the uncertainties, cannabis focused pharmacies are demonstrating more cautious order behavior.

In light of this, Cantourage is fine-tuning its go-to-market strategy in Germany, increasingly focusing on more premium strains.

Different picture outside of Germany. Next to Germany, Cantourage is also active in the UK and Poland, which both demonstrate continued strong demand growth, largely due to being in a much earlier market phase. In Poland, Cantourage has expanded its product registrations, with the first export to the country scheduled for the fourth quarter of 2025. The local market, which experienced a steep decline in demand in 2024 following regulatory tightening around telemedicine, is now showing clear signs of recovery. Management expects Poland to contribute meaningfully to revenue from 2026 onward, with additional product approvals in the pipeline.

In the United Kingdom, Cantourage has firmly established itself as a significant player. The UK subsidiary is on track to deliver approximately 150% revenue growth year-over-year, supported by an expanding product range and consistent patient uptake. Over 1.5 tonnes of medical cannabis have already been supplied in 2025, with a growing portfolio of more than 30 SKUs now active in the market. The UK is emerging as a vital growth engine, providing scale and attractive margins.

Importantly, CEO Philip Schetter has returned to his role after a short personal break in August. His return comes at a pivotal moment as Cantourage navigates evolving market dynamics and regulatory uncertainties in Germany while accelerating its international expansion.

Trading at 0.5x EV/sales FY25e, the current valuation reflects an unjustified discount to the share’s fair value. In light of the temporarily increasing uncertainty, we trim estimates and lower our PT to € 10.50 (old: € 13) based on DCF but confirm our BUY rating. The recent 51% acquisition of Remexian Pharma by US-listed High Tide should provide additional valuation support as the purchase price implies an EV/sales multiple of 0.84x.