THE TREND
(Boursier.com) — The CAC40 is in the process of recovering all of its fall in July at the rate of a fifth rising session on Thursday. After a peak at 7,400 points at the end of June, we are back at almost 7,380 points this Thursday noon (+0.6%).
In fairly calm news before the start of the biannual publication season, the mass distribution sector is making headlines with the offensive of Carrefour, which announced the takeover of the Cora and Match brands from the Belgian group Louis Delhaize.
Consumer price index data, released before the opening of Wall Street, showed yesterday that there was no runaway inflation in the United States. The slowdown in consumer prices, more marked than expected by analysts, reassured market participants and relaxed US equity markets. These data will indeed be taken into account by the US Federal Reserve, at its next meeting, to decide on the trajectory of key rates.
The easing of inflation is also confirmed in France, established at 4.5% in June over one year according to the final figures from INSEE published this Thursday morning, with +13.7% for food after +14 .3% in May, an average slowdown, but far from being harmonized according to the categories.
RISING VALUES
* Crossroads (+0.75% to 17.42 euros) yesterday reached an agreement with the Louis Delhaize group for the acquisition of the Cora and Match brands in France, which operate 60 hypermarkets and 115 supermarkets respectively. They generated a turnover excluding tax of 5.2 billion euros in 2022 (4.3 billion euros excluding petrol), for an EBITDA of 189 ME. The store network acquired presents a very strong geographical complementarity with that of Carrefour, with particularly high market shares in the Grand Est and Northern regions of France, where Carrefour has little presence. The operation includes the acquisition of the premises of 55 hypermarkets and 77 supermarkets. The transaction, which is expected to be finalized in the summer of 2024, values the assets acquired on the basis of an enterprise value of 1.05 billion euros. Carrefour promises that it will be accretive to adjusted net earnings per share from the first year.
* Stellantis resumed 1% to 16.9 euros. The title was supported yesterday by a note from Bank of America which raised to ‘buy’ its recommendation on the manufacturer by targeting 20 euros. The group, owner of Peugeot and Citroën, will publish its half-year results on Wednesday July 26.
* vinci gains 1% to 106.2 euros. The Société du Grand Paris has awarded a consortium of companies bringing together several Vinci subsidiaries the first contract for the design and construction of the Grand Paris Express. It covers the first section of line 15 West. This one, located in a very dense urban area, will connect the Pont de Sèvres station to La Défense (Hauts-de-Seine). Representing an amount of 2.71 billion euros, 20% of which will be awarded to local SMEs, the contract covers the design and construction, all trades, of 14 km of tunnels, 5 stations and a rear station and 16 service structures.
FALLING VALUES
* Casino lost 4.5% to 3.16 euros after having communicated an estimate of its turnover France realized in the 2nd quarter of 2023 and its Ebitda France after rents realized in the 1st half of 2023. The estimated turnover for the 2nd quarter 2023 Parisian and convenience stores increased by +2.6% on a like-for-like basis. The estimated activity of hyper- and supermarkets plunged by -17% and -14% respectively on a like-for-like basis, notably under the effect of price cuts. For the same period, Cdiscount’s turnover should be down -22% on a like-for-like basis. The GMV drops by -13% while the Marketplace GMV should be close to equilibrium (-3%). Ebitda France after rents for the 1st half of 2023 (excluding real estate development) is currently estimated between -165 ME and -175 ME (+191 ME for the same period in 2022), linked to the drop in turnover and the lower prices in hypermarkets and supermarkets. In addition, in order to reach an agreement in principle with the main creditors on the restructuring of the group’s financial debt by July 27, 2023 at the latest, the conciliators have asked the parties to submit revised offers by July 14, 2023 at the latest. July 2023 at 9 p.m.
* Orpea (-1% to 1.85 euro) this morning provided the market with information on its operational and financial situation as of June 30 and on its liquidity outlook. And the company anticipates lower revenue growth in 2023 and a lag deemed “substantial” in terms of EBITDAR generation for 2023, of the order of -15% to -20% compared to the forecast for EBITDAR of 881 ME appearing in the updated November 2022 business plan communicated to the market on May 12. Orpea is therefore now aiming for a 2023 EBITDAR of between EUR705m and EUR750m.
* Largest drop in the CAC40, Schneider-Electric fell 1.8% to 162.3 euros. Bank Of America Securities analysts went from “buying” to “underperforming” the electrical supplier.