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Bloomberg   CRI FP
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From an industrialist to a luxury player
Upside 36.3%
Price (€) 10.36
Market Cap (€M) 258
Perf. 1W: 1.77%
Perf. 1M: -12.9%
Perf. 3M: -7.83%
Perf Ytd: -11.3%
10 day relative perf. to stoxx600: 8.45%
20 day relative perf. to stoxx600: -13.2%
Target Change16/09/2023 10:49

Adjustments to our FY 23-24 outlook following the H1 results

Change in Target Price€ 17.5 vs 23.9-26.9%

Change in EPS2023 : € 0.39 vs 0.80-51.8%
2024 : € 0.74 vs 1.20-38.2%

We have revised our estimates for 2023 and 2024 downwards following H1 23. We were over-optimistic about top-line growth and now estimate sales of €702m with an underlying operating profit of 5%, compared with 6.1%. The downward revision comes mainly from the Chargeurs Advanced Materials division, where we were too enthusiastic about the prospects for a rebound in volumes in a macro-economic environment that remains unfavourable. We have also lowered our estimates for the Fashion Technologies division, which, despite the catch-up effect of the fashion and luxury goods sector, recorded a fall in sales in H1 due to the devaluation of the Argentinian peso. Top-line growth was also impacted by our downward revision of estimates for Chargeurs Luxury Fibers, whose growth was adversely affected by a cyclone in New Zealand. Lastly, our EPS forecasts were penalised by the rise in financial expenses in H1 23.

Change in NAV€ 32.2 vs 41.1-21.5%

Given that we have based our NAV estimate on EV/EBITDA multiples with an average estimated EBITDA for 2023, 2024 and 2025, our downward revision of EBITDA particularly for Chargeurs Advanced Materials has penalised our NAV. We now value the division at around €300m, compared with €452m previously. The downward revision of the estimated EBITDA for Fashion Technology has also had a slight negative impact on our NAV. Lastly, the increase in net debt from €174.4m at the end of 2022 to €194.4m in H1 23 contributed to the fall in our NAV.

Change in DCF€ 17.3 vs 26.3-34.1%

The sharp fall in our DCF comes from our downward revisions to the FY 23-24 EPS forecast (see EPS commentary). We expect revenues of €702m (vs. €789m) with an underlying profit of €35m for 2023 and revenues of €788m (vs. €872m) with an underlying operating profit of €49m (vs. €53m). In addition, as with NAV, the increase in estimated net debt weighs on our DCF.


30 Apr 24 Earnings/sales releases
Q1-24 Chargeurs kicks off the year in high gear

16 Feb 24 Earnings/sales releases
Operational results in line with the 2023 expect...

15 Nov 23 Target Change
Adjustments to our FY 23-24 outlook

13 Nov 23 Earnings/sales releases
The worst is over as Chargeurs Advanced Mate...

12 Sep 23 Earnings/sales releases
Solace in museums

25 May 23 Earnings/sales releases
Heading for a Chargeurs Advanced Materials re...

13 Mar 23 Earnings/sales releases
Strong 2022 introduces a promising 2023