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

Chargeurs

CR
Bloomberg   CRI FP
Support Services  /  France  Web Site   |   Investors Relation
Strong 2025 ambitions, luxury flavour
Target
Upside 76.3%
Price (€) 15.7
Market Cap (€M) 391
Perf. 1W: 1.29%
Perf. 1M: 6.44%
Perf. 3M: 20.4%
Perf Ytd: 11.5%
10 day relative perf. to stoxx600: 1.17%
20 day relative perf. to stoxx600: 0.78%
Earnings/sales releases21/01/2012

Sales release: in line with our expectations

Fact

For FY 11, Chargeurs reported a 7.9% increase yoy in revenues to €552.3m, mainly due to a price effect of +10.2% partly offset by a 2.3% decline in volumes.
The Wool division performed well at €185m (33.5% revenues) which represented a 23.4% increase compared to the same period last year (+18% in Q1, +27% in H1 and 24.3% for 9M) driven by the wool price.
Both the Protective films and Interlining divisions were negatively impacted by the current turmoil with top-line growth of respectively +1.5% and +1.3% (7.7% and 8.1% in H1 while it was still +3.8% and +5.3% for 9M).
For FY11, the group now guides for operating income to reach €23.9m (+12.2% compared to the same period last year and ahead of the previous group’s target of €22.8m) while the net result should stand at €10m (stable compared to previous guidance but -22.5% compared to the 2010 figure which included a positive deferred tax effect).
Earnings figures are due to be released on 9 March.


Analysis

As expected, activity in H2 was much more difficult for the group even though it succeeded in (slightly) improving its operating margin (from 4.16% in 2010 to 4.32% in 2011).
But we assume that the global deterioration of 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’s profitability for 2012.


Impact

No change at this stage as our figures already take into account our cautiousness for FY12.


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...

.