(AOF) – Trigano (-7.44% to 143 euros) was relegated to last place in the SBF120 this Wednesday after the publication of half-year results marked by significant cash consumption. The leisure vehicle specialist announces that “the reconstitution of the stock of motorhomes through the distribution networks from which it benefits” is now complete and that the growth of its activity should therefore “approach that of its markets” over the next few years. next months. The group, however, posted a half-year net profit up 48.3% to 180.5 million euros.
Consolidated current operating profit increased by 40.3% year-on-year to 243.2 million euros. Published in April, turnover increased by 18.9% to 1.9 billion euros.
Free cash flow disappoints
Berenberg remains a buy with a price target of 200 euros, stressing that the stock is “still cheap”. The broker notes, however, that despite record profits, the generation of free cash flow in the first half was “negative to the tune of more than 100 million euros”, due to a “very poor performance in terms of capital requirements”. working capital”. The latter recorded a deterioration of 260 million euros.
Trigano explained that “the working capital requirement was impacted by the reconstitution of integrated distribution stocks and by disruptions in the logistics chain linked to poor delivery conditions for rolling bases.” increased inventory levels at motorhome factories far exceeding the usual seasonality.”
The normalization of the level of working capital requirements should occur gradually during the second half of the year.
“The weak dynamics of the caravan market are confirmed”, specifies Trigano, adding that “the prospects of a recovery in demand are envisaged at best during the 2025 financial year”, while the mobile home market, remained sustained in the first half although affected by the level of interest rates, “could be marked by a reduction in investment by large operators in the outdoor hotel industry”.
A glimmer of hope, the motorhome markets “remain well oriented in the main European countries in 2024 with, for example, double-digit increases in registrations in Germany, France, Italy and Spain”. “Commercial activity on the grounds and at fairs and exhibitions is also strong,” adds the group, specifying that customer demand “is mainly for new vehicles with a strong comeback for traditional motorhomes”.
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