(BFM Bourse) – The leisure vehicle specialist once again recorded strong growth in the second quarter despite a more demanding basis of comparison. Its stock is rising sharply.
Trigano’s publications often give rise to large-scale variations on the stock market. This is still the case this Thursday. The action of the specialist in leisure vehicles (motorhomes, caravans) takes off, gaining 9.7% around 3:20 p.m.
For years, the group has benefited from increased demand for its products, thanks to favorable demographic developments. The pandemic has been an accelerator, the camper van allowing family escape while remaining in a “health bubble”.
The result is robust growth for the company controlled by the Feuillet family. Trigano further illustrated this by publishing its activity for the second quarter of its 2023-2024 financial year, which will end next August. Over this period, the group’s revenues stood at 933.6 million euros, up 15.9% on a comparable basis, after +18.7% over the previous quarter.
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The supply chain is more fluid
Trigano “disregarded a more demanding basis of comparison compared to the first quarter (second quarter sales were up 11.5% year-on-year last year, compared to -6.5% year-on-year in first quarter)”, observes Trion Reid, analyst at Berenberg.
Sales of motorhomes were once again very high, with an increase of 24.2% on a like-for-like basis over the quarter. Trigano attributes this growth to “the continued improvement in the functioning of the supply chain with the end of the shortage of rolling bases”.
“The resilience of the motorhome business is remarkable, especially considering that caravan sales, more affected by rising interest rates, fell 29% year-on-year,” notes Trion Reid . Oddo BHF, for its part, describes an “excellent performance”.
For the future, Trigano did not, as usual, give any quantified prospects. “The start of the calendar year 2024 is characterized by good performance in the motorhome market in Europe, with strong interest shown in particular by first-time buyers,” the group nevertheless argues.
A cheap stock
“The normalization of logistics flows – still in progress – leads to a one-off increase in working capital requirements, which is accentuated by the development of Trigano’s retail (distribution network, Editor’s note) (…) and by the seasonality of the activity Furthermore, the quality of the margins makes it possible to envisage good progress in current operating income in the first half of 2024,” the company also indicates.
Oddo BHF appreciates a “reassuring message on the evolution of profitability” and has revised upwards its current operating profit forecast for the entire 2023-2024 financial year by 5.5% to 484 million euros.
“Ultimately, this publication reinforces our conviction in the group’s ability to post sustained growth in its turnover while improving its profitability,” concludes Oddo BHF, which also believes that the group’s current valuation implies a scenario that is “too pessimistic” about the evolution of its results.
An observation shared by Trion Reid who considers the publication “reassuring” and points to stock market multiples that are “not demanding enough” (only five times the gross operating profit expected for this financial year), given Trigano’s solid financial balance sheet.
Julien Marion – ©2024 BFM Bourse
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