DAVY VIEW

The slowdown in growth through Q2 was modestly behind expectations. Coupled with margin headwinds, we will pare our FY 2021 EBITDA by c.6-7%. The group restructuring remains on track, with management committing to list the Beauty business in 2022. Uniquely, the investment case now juxtaposes an ambitious consolidation strategy with several potential minority sell-downs. In time, this should enable the external validation of segmental valuation potential (sum-of-the-parts). We believe the fundamental proposition of the equity story hasn’t changed and see current share price weakness as an attractive entry point.