AlphaValue Corporate Services
This research has been commissioned and paid for by the company and does therefore not constitute an inducement caught by the prohibition under MiFID II

Chargeurs

CR
Bloomberg   CRI FP
Support Services  /  France  Web Site   |   Investors Relation
From an industrialist to a luxury player
Target
Upside 37.3%
Price (€) 10.28
Market Cap (€M) 256
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
  12/23A 12/24E 12/25E 12/26E
EBITDA €M 46.9 56.7 68.0 79.3
Funds from operations (FFO) €M 1.80 40.2 51.1 60.5
Ordinary shareholders' equity €M 252 265 284 307
Gross debt €M 360 360 360 360
   o/w Less than 1 year - Gross debt €M 45.6 45.6 45.6 45.6
   o/w 1 to 5 year - Gross debt €M 313 313 313 313
   of which Y+2 €M 88.3 88.3 88.3 88.3
   of which Y+3 €M 65.1 65.1 65.1 65.1
   of which Y+4 €M 37.5 37.5 37.5 37.5
   of which Y+5 €M 123 123 123 123
   o/w Beyond 5 years - Gross debt €M 1.20 1.20 1.20 1.20
 + Gross Cash €M 89.9 88.3 80.5 78.4
 = Net debt / (cash) €M 270 272 280 282
Bank borrowings €M 360 360 360 360
Financial leases liabilities €M 0.00 0.00 0.00 0.00
Other financing €M 0.00 0.00 0.00 0.00
Gearing (at book value) % 89.6 102 97.2 91.3
Equity/Total asset (%) % 50.2 50.0 51.0 52.7
Adj. Net debt/EBITDA(R) x 5.76 4.80 4.12 3.55
Adjusted Gross Debt/EBITDA(R) x 8.08 6.91 5.77 4.95
Adj. gross debt/(Adj. gross debt+Equity) % 60.0 59.7 58.0 56.1
Ebit cover x 0.71 1.41 2.19 2.63
FFO/Gross Debt % 0.47 10.3 13.0 15.4
FFO/Net debt % 0.67 14.8 18.3 21.5
FCF/Adj. gross debt (%) % -10.6 2.07 3.94 5.99
(Gross cash+ "cash" FCF+undrawn)/ST debt x 1.09 2.11 2.10 2.24
"Cash" FCF/ST debt x -0.75 0.18 0.36 0.54
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 : 20/05/2024, Changes to Forecasts : 20/05/2024.