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Chargeurs

CR
Bloomberg   CRI FP
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From an industrialist to a luxury player?
Target
Upside 40.1%
Price (€) 10.6
Market Cap (€M) 267
Debt

If funding had not been an issue for Chargeurs, which had wisely accumulated excess resources to this end through a combination of private debt placings (Euro PP), today’s story is quite different. The Group’s net debt position rose from €174.7m at the end of 2022 to €194.4m in H1-2023, increasing the leverage ratio from 2.6x to 3.5x. In addition, the rising interest rate environment with hyperinflation in Argentina resulted in an increase in the Group’s financial expenses in H1-23 to €12.4m. Despite the deterioration in the Group’s financial leverage position, Chargeurs still has ample credit lines, with total available financial resources (cash and undrawn lines) of €271m in H1-23. The Holding company intends to maintain a controlled leverage level, with a target debt/ebitda ratio of less than 3x.

Funding - Liquidity
  12/22A 12/23E 12/24E 12/25E
EBITDA €M 67.9 47.8 64.9 80.6
Funds from operations (FFO) €M 33.1 27.3 41.9 54.3
Ordinary shareholders' equity €M 280 262 283 313
Gross debt €M 312 341 341 341
   o/w Less than 1 year - Gross debt €M 68.3 37.5 37.5 37.5
   o/w 1 to 5 year - Gross debt €M 120 181 181 181
   of which Y+2 €M 38.9 92.5 92.5 92.5
   of which Y+3 €M 45.0 63.2 63.2 63.2
   of which Y+4 €M 35.0 2.70 2.70 2.70
   of which Y+5 €M 2.50 22.5 22.5 22.5
   o/w Beyond 5 years - Gross debt €M 124 122 122 122
 + Gross Cash €M 131 133 126 127
 = Net debt / (cash) €M 182 208 215 213
Bank borrowings €M 312 341 341 341
Financial leases liabilities €M 0.00 0.00 0.00 0.00
Other financing €M 0.20 0.00 0.00 0.00
Gearing (at book value) % 53.5 74.3 74.7 68.3
Equity/Total asset (%) % 58.9 52.6 53.7 56.2
Adj. Net debt/EBITDA(R) x 3.11 4.97 3.77 3.02
Adjusted Gross Debt/EBITDA(R) x 4.98 7.98 5.89 4.76
Adj. gross debt/(Adj. gross debt+Equity) % 54.7 59.2 57.5 55.1
Ebit cover x 2.04 1.03 2.28 3.09
FFO/Gross Debt % 9.79 7.16 11.0 14.1
FFO/Net debt % 18.2 13.1 19.5 25.4
FCF/Adj. gross debt (%) % -6.63 -0.06 1.80 3.77
(Gross cash+ "cash" FCF+undrawn)/ST debt x 1.58 3.53 3.55 3.78
"Cash" FCF/ST debt x -0.27 0.00 0.21 0.41
Credit Risk
Covenants
BeginEndTriggerConditionConsequence
30/06/2017 31/12/2023 Net debt/Ebitda(R) < 3.50 Early repayment
30/06/2017 31/12/2023 Gearing < 85.0 Early repayment
Changes to Story : 22/11/2023, Changes to Forecasts : 22/11/2023.