Chargeurs’ Q4 sales figures are in line with 9-month trends, confirming solid progress in the Thin films sector, still weak demand in Interlining and sharply declining sales in Wool as the group has sold those parts of the Wool businesses which were capital hungry
On a pro-forma basis, group sales are down 4%. In the real world, they are down 11% to €466m.
There is no surprise in these figures. The good news may actually be on the Interlining business which posted another 3% quarterly decline but would have returned flat sales without the negatives of a weaker Argentine Peso and a weaker Real. This means that this unit is defending its turf well.
There is no reason to change earnings expectations before the earnings release on 7/03/2014 even though we are clearly verging on the optimistic side. The group has confirmed another sharp debt reduction which will probably lead it to be debt free which is one of the central planks of its promises. Earnings growth will follow whatever.
