Akwel: under pressure

(Boursier.com) — Akwel fell by 3% to 9.70 euros this Friday, while in the first half, turnover stood at 528.8 ME, recording a decrease of -3.1% in published terms and -2.8% at constant scope and exchange rates. While the upward pressure on energy and raw material costs is less strong than in 2023, the ability to pass on the increases to customers proved more complex in the first half. In addition, the tension remains very high on wage costs, particularly in Turkey and Mexico, and weighs on operating profitability.

In this context, gross operating surplus is down -1.3% to €49.2 million and current operating income is down -21.6% to €24.4 million, representing a current operating margin of 4.6% of turnover.
Net income reached 20.2 ME in the first half vs. 22.2 ME. Net cash stood at 106 ME as of June 30, 2024 compared to 105 ME as of December 31.

Given the performance recorded by the group in the first half of the year, the downward outlook on the global market and overstocks at certain manufacturers, Akwel anticipates a slight decline in turnover for the current financial year, including a decline in series SCR activity before a production shutdown scheduled for 2025…

Portzamparc does not see any surprises in the accounts or in the outlook. The analyst is more concerned about the impact of the planned shutdown of the SCR series activity in 2025. Enough to remain in the meantime to “strengthen” the file by targeting a price of 15.5 euros.