AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II


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From an industrialist to a luxury player?
Upside 113%
Price (€) 8.07
Market Cap (€M) 202
Perf. 1W: 0.50%
Perf. 1M: -27.8%
Perf. 3M: -26.2%
Perf Ytd: -40.5%
10 day relative perf. to stoxx600: -5.45%
20 day relative perf. to stoxx600: -28.2%
Earnings/sales releases29/08/2011


For H1 11, Chargeurs reported a 13.6% increase yoy in revenues to €290.7m, mainly due to a price effect of 10.4%. Operating income amounted to €14.6m +15% driven by volumes, mix and pricing power (the group succeeded in passing on price increases to compensate for the rise in the price of raw materials).
The company achieved net income of €7.2m which was a c.6% increase compared to the same period last year (including €1.1m relative to financial restructuring initiated in H1 10).
As a consequence of the WCR requirement +€16.8m, net debt was €68.1m at end-June, i.e. a €5.5m increase (as a reminder net debt is deflated thanks to €64.6m factored in for 2010 and €73.1m at the end of H1 11).
For FY 11, management highlighted the lack of visibility on the macro-economic environment and thus did not provide any financial target.


A good start to the year, but the group is much more cautious on the next few months.
Given progress in July-August period (revenues +€80m), our latest expectations in terms of top-line growth seems achievable.
At mid-August, raw material prices are actually on a downward trend but they remain significantly above 2010 levels. Moreover, we have no visibility on the group’s pricing power: higher costs could threaten the group’s profitability: the time lag between cost increases and the rise in selling prices and resistance from customers.


Our upward EBITDA revision is offset by increasing WCR. But, overall, no major changes to our target price.