THE TREND
(Boursier.com) — After 3 sessions close to 6,100 points, the CAC40 backtracked on Friday. The decline was finally limited to -0.85% to 6,035 points after a decline of more than 2% in session with many quarterly publications poorly received. This weekend is particularly complicated for luxury. After the brilliant publications of LVMH and HermesKering and L’Oreal cooled the mood.
If the quarterly results keep them busy, investors are still concerned about monetary policies, as the next meeting of the European Central Bank is scheduled for next week and that of the US Federal Reserve in two weeks. For the first time in more than a decade, the German Bund rate, the benchmark within the euro zone, exceeded the 2.5% mark this morning (+10.5bp). This follows a record 12-week streak of German 10-year yield advances. Money markets expect the ECB to raise its key rate by around 75 basis points to 1.5% next week, then raise it to 3.25% by next summer. In France, the yield on the 10-year OAT has just exceeded 3% for the first time in almost 10 years.
RISING VALUES
* Atos back up almost 12% to 9.96 euros on cheap buyouts. The group has announced several contracts in recent days, including a contract of at least 5 years with the Dutch Ministry of Infrastructure and Water Management (IenW) for hosting, maintenance and migration to the public cloud. of its SAP infrastructure.
* The group Orapi (+3.2%) achieved a turnover of 54.3 ME in the third quarter of 2022 against 52.1 ME in Q3 2021, an increase of +4.2% on a like-for-like basis. Orapi claims to record good activity in this Q3, with a return to normative levels in Asia, and an acceleration of sales in Southern Europe. This moderate increase is explained by the fact that price inflation (+6%) and healthy organic growth (+3.5%) are partly offset by the drop in demand for “Covid” products (-40 %). At the end of September, turnover reached 173.4 ME against 171.4 ME a year earlier.
* OSE Immunotherapeutics (+37%) is preparing a pivotal confirmatory Phase 3 trial to then seek regulatory registration of Tedopi as a new standard treatment for advanced or metastatic non-small cell lung cancer (NSCLC) in secondary resistance after failure of a CPI. The Company has filed an official request for a “Type C meeting” with the FDA in the United States to validate the new study protocol in patients with second-line NSCLC after failure of an IPC. OSE Immunotherapeutics has already received “Scientific advice” from the European Health Agency (EMA, European Medicines Agency) for this target population. Meetings are scheduled with regulatory agencies to validate the new protocol for the Phase 3 confirmatory clinical trial in NSCLC.
* Renault finally ends in the green (+0.1%) after unveiling a turnover of 9.8 billion euros in the third quarter, up 20.5%. At constant exchange rates and scope, growth reached 19.4%. An evolution in line with analysts’ expectations. Automobile turnover stands at 9 billion euros, up 21.7%, but lower than the market consensus (9.6 billion euros). In a context still disrupted by the semiconductor crisis, the diamond company sold 481,000 vehicles in the 3rd quarter, down 2.4% over one year. Renault Group confirms its financial outlook for 2022, namely a Group operating margin above 5% and Automotive operating free cash flow above 1.5 billion euros. Renault Group will present, during its Capital Market Day on November 8, chapter 2 of its Renaulution strategy as well as the update of its medium-term financial objectives.
FALLING VALUES
* EssilorLuxottica (-3.5% to 153.4 euros) saw its consolidated revenue for the third quarter of 2022 amount to 6,394 million euros, up 8.2% at constant exchange rates compared to the third quarter 2021 revenue (+17% at current exchange rates). For the first nine months of 2022, revenue amounted to €18,388 million, up 8.8% compared to 2021 over the same period (+15.5% at exchange rates currents). Growth remains strong year-over-year in the first three quarters of the year despite the unfavorable effect of the high base of comparison.
* Largest drop in the CAC40, L’Oreal lost 5.8% to 310 euros. The world’s number one cosmetics company reported strong sales growth in the third quarter, as demand in Europe and the United States offset disruption in China linked to health restrictions. L’Oréal, which owns consumer brands like Maybelline and other higher-end brands like Lancôme, thus achieved revenues of 9.58 billion euros, up 9.1% on a like-for-like basis. But analysts are concerned about the slowdown at L’Oreal Luxe, which only recently overtook the company’s consumer division to become the group’s largest, and has been driving growth in recent quarters. Jefferies thus explains that he has “mixed feelings” about the figures published by L’Oréal and underlines in particular that the results of the luxury division are below expectations. “Despite this good commercial momentum and the confidence shown by management in market conditions, it would seem that the slowdown observed in Asia and in the Luxury division is currently weighing on the stock”, comments Bordier & Cie.
* Kering fell 3.3% to 450.8 euros the day after its quarterly point. The luxury group has unveiled a turnover of 5.137 billion euros, up +23% in published data and +14% on a comparable basis. If the growth is higher than analysts’ expectations, the market retains more of the ‘new disappointment’ on the side of Gucci, the company’s flagship brand. Although a clear improvement compared to the previous quarter, the latter’s organic growth was limited to 9% in the third quarter, against a consensus of 11%. In addition, Gucci’s organic revenues in China fell during the quarter, said Jean-Marc Duplaix, chief financial officer of Kering. “The goal of improving Gucci’s performance in China is a long-term plan,” he said. Gucci, the French group’s main profit center, has come under intense market share scrutiny in recent months as after years of exceptional growth its sales have lagged those of big competitors, such as Louis Vuitton and Hermes. The good news for Kering comes from the strong momentum of Yves Saint Laurent, whose turnover jumped 30% on a comparable basis. This is more than double what analysts expected. During the analyst conference following the publication, the manager clarified that the Parisian brand had “very good penetration” with local customers, citing in particular the popularity of its Icare bag.
* Vivendi stumbles 2.9% to 7.88 euros this weekend. Despite online revenues, even slightly higher than analysts’ expectations in the third quarter, the market is focusing on the Canal+ ‘disappointment’. The entertainment group unveiled a turnover of 2.578 billion euros, up 4.1% over one year (+0.6% at constant exchange rates and scope). Canal+ nevertheless saw its revenues fall by 3.3%, to 1.42 billion euros. Revenue came in above consensus estimates, but Canal+ is ‘weak’ in the mix, Deutsche Bank says. A disappointment linked in part to the late releases of Studiocanal films, according to the company, which also wanted to reassure about the growth of its subscriber base in France. Furthermore, the strength of Havas and Gameloft contributed to boosting overall sales above market expectations.
* Faurecia (Forvia) (-2.6%) raised its sales guidance for the whole of the 2022 financial year. The automotive supplier, which has changed in size with the takeover of Hella, is now targeting revenues between 24.5 and 25.5 billion euros this year (compared to 23 to 24 billion euros previously) in order to reflect the evolution of exchange rates and the revision of the estimate of world automobile production to 77 million LV (compared to 74 million LV previously). He still anticipates an operating margin between 4 and 5% and a net cash flow at equilibrium. In the third quarter, sales reached 6.6 billion euros (6.37 billion euros consensus), up 31% on an organic basis, largely outperforming global automotive production.
* Guerbet yields 2.5% to 17.3 euros, barely sanctioned after his warning. The pharmaceutical group has indicated that its 2022 growth will be less than 2% on a like-for-like basis and constant exchange rate, against a previously announced range of 2 to 4%. In terms of profitability, Guerbet has specified that it is aiming for an EBITDA / Turnover rate of between 13 and 14%, excluding exceptional costs linked to the optimization of the Group’s operational plan and the evolution of the sales model in China, against 14.4% previously announced (corresponding to the rate achieved in the 2021 financial year).