(BFM Bourse) – The small conglomerate published a marked drop in its revenues in the first quarter, which did not benefit from the very buoyant winds of the same period of 2022. The company also still intends to carry out a major operation for its division. luxury.
Chargeurs still has to wait before seeing better days for its business. And for its stock price. The small conglomerate present in niche trades (surface protection, interlining, museum layout or even production of worsted wool for the luxury industry) plunged 9% this Wednesday on the Paris Stock Exchange to 12.96 euros around 11:30 a.m. , reaching its low point for the year.
This blow on the stock market comes after the announcement of the company’s first quarter turnover, which fell sharply over one year. Over the first three months of the year, the group’s total revenues fell by 18% like-for-like to 169.7 million euros. This drop is higher than the forecast of TP ICAP Midcap, which expected a like-for-like decline of 13%.
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A stock rebuilding movement a year earlier
“A decline in revenue was expected given the demanding comparison base, however we could expect a little bit better. And even if in reality their revenues are up compared to the fourth quarter of 2022, the market is struggling to think on a sequential rhythm, which can perhaps explain the fall of the title this Thursday”, underlines a financial analyst.
In effect; compared to the fourth quarter of last year, revenues increased by 0.2% like-for-like.
But therefore over one year, activity remains in sharp decline, with a drop largely due to the “advanced materials” division, ie plastic and paper films or even technical adhesives to protect surfaces. This division posted a drop in revenue of 27% like-for-like over one year to 70.7 million euros.
However, this activity had been carried in the first quarter of 2022 “by a massive movement to rebuild post-Covid stocks on the momentum of 2021”, recalls the company, a movement which had also extended into the second quarter.
“Note, however, that volumes are up 21% in this first quarter compared to the last quarter of 2022, a sign that the low point has certainly now been reached in this activity”, underlines however TP ICAP Midcap.
Another activity in sharp decline over the period, Chargeurs luxury fibers, i.e. the production of merino wool for fashion and luxury players, which saw its revenues fall by 30% like-for-like to 24 million euros, also penalized by a demanding basis of comparison. “Business was impacted by the continued effects of Covid in China and by extreme weather conditions which disrupted production,” said Chargeurs.
More than a billion euros in revenue in 2025
On the other hand, the Chargeurs PCC fashion technologies division, which specializes in interlinings for fashion and luxury, resisted, with stable sales over one year. The Chargeurs museum studios division (developing museums) grew by 30.2% like-for-like to 24 million euros.
“Recall that over the year, this division should approach 120 million euros, i.e. a growth of 40% compared to last year, almost guaranteed by the execution of its large order book”, notes TP ICAP Mid cap.
Regarding the group’s outlook, the effects of the unfavorable basis of comparison should fade in the second half of the year. Thus the company confirms its scenario “of accelerated growth and profitability on all contributing engines in the second half of 2023”.
Quoted in a press release, CEO Michaël Fribourg, also reiterated the group’s desire to achieve a turnover of more than 1 billion euros in 2025 and to carry out a “structuring operation” in its luxury division. Such a transaction “would certainly represent a good catalyst for the title”, considers TP ICAP Midcap which judges that the “current valuation is still far from reflecting the potential of the group for the coming years”. The design office confirmed its buying advice with a target price of 24 euros.
Julien Marion – ©2023 BFM Bourse
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