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Chargeurs

CR
Bloomberg   CRI FP
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From an industrialist to a luxury player?
Target
Upside 25.5%
Price (€) 11.96
Market Cap (€M) 302
Perf. 1W: 0.17%
Perf. 1M: 0.34%
Perf. 3M: 2.40%
Perf Ytd: 2.40%
10 day relative perf. to stoxx600: -1.07%
20 day relative perf. to stoxx600: -3.48%
Other news/comments04/05/2012

Lower volumes will impact profitability

Fact

For Q1 12, management reported revenues of €140.2m, all in all broadly stable compared to the same period last year but showing a strong decrease in volumes, -11.6%, while the mix/price effect was 8.7% and FX 2.6%.
For H1 12, Chargeurs has guided for revenues to be around €290m and operating income to be c.€9m.


Analysis

The group succeeded in further passing on price increases but volumes were negatively impacted by customers’ lack of visibility primarily in the Chargeurs Protective films and Interlining divisions. Europe remained very affected while the US is recovering.
The Wool division performed well at the top line (growth reached +5.9%) driven by the wool price (but the trends are changing with decreasing prices from 175USc/lb in January 2011 to 101USc/lb in April 2012) and selectivity in contracts.
As expected, Chargeurs is not immune from the global deterioration of consumption in Europe since last summer: customers’ lack of confidence in this difficult economic environment with a probable recession in Europe (48% group’s revenues), the increasing pressure on prices as well as the time lag between cost increases and the rise in selling prices and the fluctuations in costs…


Impact

We have already taken into account the challenging environment in our forecasts. We will see later on if it is necessary to revise down our figures further.


Updates

25 Nov 13 Other news/comments
Steady going over Q3

01 Sep 13 Earnings/sales releases
Corner turned?

24 Jan 13 Earnings/sales releases
€16m 2012 loss; regaining room for manoeuvre

26 Nov 12 Earnings/sales releases
Resistance of prices, drop in volumes

03 Oct 12 Earnings/sales releases
Worsening context weighs on profitability

04 May 12 Other news/comments
Lower volumes will impact profitability

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