Delta Plus Group: an analyst adjusts the sights

( — Delta Plus Group rose by 0.5% to 63.50 euros, while group sales increased by 24.2% (+59.9 million euros) over the first 9 months of 2022 and reached 307.4 million euro. The group benefited from a positive scope effect, linked to the integration of Maspica (Italy) and Safety Link (Australia), both integrated into the Group’s scope as of January 1, 2022, as well as the integration of the company Drypro (Mexico) on July 1, 2022.

The positive scope effect (+16%) represents an impact of +39.6 ME on the turnover of the first 9 months of 2022. The positive exchange rate effects amount to 9.4 ME since the beginning of the year, i.e. an impact of +3.8% on the variation in turnover.
At constant scope and exchange rates, organic growth in consolidated revenue amounts to +4.4% in 2022 (+€10.8 million).

Prospects displayed

Delta Plus Group confirms positive organic revenue growth in 2022. The group intends to successfully integrate the companies Maspica, Safety Link and Drypro, acquired in 2022, and intends to defend the level of operating profitability in an unfavorable context
Delta Plus Group confirms the solidity of its financial structure during this period of uncertainty…

Delta Plus Group has demonstrated since 2020 its ability to limit the consequences of the Covid-19 crisis on its activity and to pursue at the same time a proactive policy of acquisitions, confirming through 9 acquisitions finalized since the beginning of 2020 its strategy of deployment in areas with high growth potential and in businesses with high added value.

Since the beginning of 2022, the group has recorded dynamic organic growth of more than 4%, confirming the trend of the first half. The first months of integration of the new subsidiaries acquired (contributing to a turnover close to 40 ME over the first 9 months of the year) are satisfactory and confirm the stated objective of a scope effect of the order of 14% over the whole year.

External pressures

Delta Plus Group is still aiming for continued organic growth in its turnover for 2022, despite a very uncertain macro-economic and geopolitical context.
The group implements all measures intended to limit the impact of external events on the level of operating profitability. It intends to defend a level of results in line with the performances posted in the 1st half of 2022, and aims to maintain a solid financial structure allowing it to ensure the financing of its development, in particular within the framework of its strategy of moving upmarket and geographical reinforcement.

“This publication tends to confirm the management’s ability to deliver on its growth objectives and reinforces our scenario” comments Portzamparc who continues: “The annual profitability, which we expect in line with that of H1, remains however the subject of this end of year… After updating the market parameters, we are adjusting our target from 83 to 81 euros and maintaining our recommendation to ‘Buy'” concludes the analyst.

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