Douglas - comment

Douglas reported very strong fundamental results today, despite the closure of significant parts of its Spanish business (within the scope of the SOP). Overall the company grew strongly, both vs. Q121 and vs pre-pandemic. The one sore point is that the online business failed to expand Vs last year. With the comparable quarter having been hampered by numerous lock-downs (including Germany and France) in late 2020, online had gained vastly that year and perhaps holding on to that revenue this year )where Germany and France were open - if restricted) can be considered a result. But while cash flow was good, even by Q1 standards, the temporarily “stagnating” Online result weighs a little on any future IPO valuation - a key consideration for the PIKs in last year’s refinancing. Regardless, those PIKs are up today as results could have looked much worse.

- Douglas are growing strongly and the diversification into partner products on the one hand and online pharmacy on the other looks promising. The name is probably fine for another year (given half the year is in the bag), but it’s tight for our book and the 2026 PIKs have more duration than what we are looking for.