AlphaValue Corporate Services
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From an industrialist to a luxury player?
Upside 101%
Price (€) 12.72
Market Cap (€M) 319
Perf. 1W: 2.58%
Perf. 1M: -10.2%
Perf. 3M: -7.96%
Perf Ytd: -6.26%
10 day relative perf. to stoxx600: -10.4%
20 day relative perf. to stoxx600: -11.2%
Earnings/sales releases26/11/2012

Resistance of prices, drop in volumes


For Q3 12, management reported revenues of €124.9m, -6% compared to last year with volumes declining by -8.5% and prices by -2.6% but with a favourable FX effect of +5.1%.
Over the 9m period, revenues decreased by 3.7% mainly due to lower volumes (-12%) while the price effect was positive (+4.2%) as was the FX (+4.2%).
The group has indicated that, with the application of the latest tax measures announced in France concerning “the revised earnings projections in the French subsidiaries’ 5-year business plans”, its deferred tax assets should be reduced by c.€5m.
For FY2012, given the difficult business conditions, Chargeurs guides for non-recurring restructuring charges of €6m for the strategic and cost-cutting programme, with savings of €4m per year expected as from 2013.


Continuing challenging economic situation in Europe and lower growth in Asia has further impacted the group’s activity during Q3.
- Revenues in Chargeurs Protective Films increased by 4% yoy, primarily driven by volumes, while prices were impacted by the volatility of the polyethylene price (only part of it was passed on as price increases to customers).
- Chargeurs Interlining’s revenues declined by 6.5% ytd due to lower demand from end-markets and thus lower volumes, -10.6% ytd. Chargeurs implemented its cost reduction programme in Europe and Asia with the optimisation of production facilities in France, reorganisation in the Iberian Peninsula, and consolidation of business units in China.
- The Wool business remained challenging with volumes -22.3% and financing issues, leading to a cut in production capacity in China and a cost-cutting plan in Australia and Argentina.

Thanks to the strict WCR management, we now cautiously assume net debt to be reduced to a maximum of €60m at the end of 2012, in line with management’s goal.


Our figures include the revised guidance (after the H1 release) and also the one-off restructuring charge of €6m announced on 15 November.


26 Nov 12 Earnings/sales releases
Resistance of prices, drop in volumes

03 Oct 12 Earnings/sales releases
Worsening context weighs on profitability

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