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Chargeurs

CR
Bloomberg   CRI FP
Support Services  /  France  Web Site   |   Investors Relation
Strong 2025 ambitions, luxury flavour
Target
Upside 76.4%
Price (€) 15.7
Market Cap (€M) 391
Perf. 1W: 1.55%
Perf. 1M: 11.7%
Perf. 3M: 20.9%
Perf Ytd: 11.5%
10 day relative perf. to stoxx600: 1.35%
20 day relative perf. to stoxx600: 0.56%
Earnings/sales releases19/03/2012

Increasing profitability in a challenging context

Fact

For FY11, management fine-tuned its reported revenues to €552.1m instead of €552.3m previously, representing a 7.8% increase with a price effect of +10.2% and volume of -2.4%.
Operating income came to €23.7m, +11.3% (+15% in H1), driven mainly by mix and pricing power (the group succeeded in passing on price increases to compensate for the rise in the price of raw materials).
Net income was €10.5m which represented an 18.6% decrease compared to the same period last year (including €0.9m related to financial restructuring initiated in H1 10 and a tax impact of €4.5m).
As a consequence of the WCR requirement linked to the huge increase in raw material prices (no information provided at this stage), net debt was €80.6m, up €12.2m compared to end-June. Gearing stood at 44% compared to 38% at end-2010.
For FY12, Chargeurs remains cautious given the current economic environment and thus did not provide any financial targets but expects a “satisfactory level of profitability”.


Analysis

As expected the second part of the year was difficult, especially in Q4.
The group succeeded in passing on price increases but volumes were negatively impacted by customers’ lack of confidence primarily in the Chargeurs Protective films and Interlining divisions.
The Wool division performed well both on top-line (growth reach +23.5%) and profitability (€6.7m which represents about 5.6× 2010’s level) driven by the wool price and selectivity in contracts.
We assume that the global deterioration in consumption in Europe since the summer (customers’ lack of confidence in this “troubled” environment), the increasing pressure on prices as well as the time lag between cost increases and the rise in selling prices and the fluctuations in costs will weigh on Chargeurs’ profitability for 2012.


Impact

We will review our figures with the much more detailed figures expected mid-April.


Updates

04 May 12 Other news/comments
Lower volumes will impact profitability

04 May 12 EPS change
A challenging 2012

19 Mar 12 Earnings/sales releases
Increasing profitability in a challenging context

21 Jan 12 Earnings/sales releases
Sales release: in line with our expectations

02 Dec 11 Other news/comments
Eduardo Malone has increased his stake

16 Nov 11 DCF Change
Visible slowdown in demand

16 Nov 11 Earnings/sales releases
Visible slowdown in order inflow for Q4

16 Nov 11 EPS change
Visible slowdown in demand

29 Aug 11 Earnings/sales releases
For H1 11, Chargeurs reported a 13.6% increas...

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