Plastivaloire: the warning weighs on the value

( — Plastivaloire fell by 1.5% to 4.93 euros on Tuesday, while the group announced that it had found in the second quarter of its 2021-2022 financial year a level of activity “very close” to that achieved during the second quarter 2020-2021 , but also for the 2nd quarter of 2019-2020 before the crisis.
Revenue over the period thus came to E178.5 million, down -2%, but up +11% sequentially compared to the 1st quarter, in line with the scenario of an improvement in the trend quarter after quarter. The group benefited in particular from a marked recovery in activity in the Americas zone (revenue of 26.3 ME, up +32%), under the effect of the start-up of new programs, both in Automotive than in industries. This performance offsets the decline in activity in Europe (€152.2 million or -6%), still largely impacted by the difficulties in supplying electronic components: shortages continue to cause “stop & go” periods for builders.

Over the half-year, Plastivaloire recorded revenue of €339.3 million, down -9.1% compared to the same period in 2020-2021. Turnover in Europe amounted to 289.8 ME, down -12.2%. The Americas zone (United States – Mexico) recorded revenue of €49.5 million, up +14.6%. The Automotive sector was the most affected by the supply crisis, which resulted in a decline in turnover (parts and tools) of -12.6% to 266.9 ME.
Better preserved from the effects of the shortage and with solid momentum in the “Consumer Products” segment, the Industries sector (parts and tools) grew by +6.4% and contributed €72.4 million. The Automotive and Industries sectors represent respectively 78.7% and 21.3% of half-year sales.

Plastivaloire adds that inflationary pressures on raw materials, transport and energy increased significantly in the second quarter, particularly with the emergence of the conflict between Ukraine and Russia. These cost increases, which are gradually passed on to sales prices, should impact the half-year gross margin by around 3 points, which will weigh on the EBITDA margin for the half-year..

Thanks to its positioning on buoyant programs and its geographic diversification, Plastivaloire is nevertheless maintaining its scenario of a return to growth in the second half, i.e. reversed seasonality compared to 2020-2021. The group is committed to raising its margins compared to the first half and preserving its cash, but warns that its EBITDA margin target of 10% cannot be achieved for this financial year. The group believes that all its actions will allow it to be well positioned as soon as the market recovery takes effect.
Portzamparc speaks of “a good turnover in Q2”, but obviously underlines the group’s “profit warning” by remaining to ‘keep’ on the file with a target price of 5.30 euros.

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