ING cuts B&S Group on cost inflation worries

B&S SA

17/05/2022 13:02

** ING cuts consumer goods distributor B&S Group  BSGR.AS 
to "hold" from "buy" on cost inflation uncertainty and its
potential impact operating margins
    ** The broker says that despite stronger than expected
revenue growth in Q1, it is now more cautious about the group's
near-term earnings prospects
    ** B&S on Monday reported a 14.6% increase in its Q1
turnover to 453.3 million euros ($476.9 million)  urn:newsml:reuters.com:*:nL5N2X83RM 
    ** The Dutch company flagged inflation pressure on its
EBITDA margin targets, especially in the beauty segment which
generated a third of Q1 group revenue; B&S will share EBITDA
development expectations with H1 results in August
    ** "It seems that the current global problems are all coming
together in B&S' largest business," ING says about the beauty
segment
    ** Kepler Cheuvreux echoes the sentiment on Q1 results,
saying organic sales growth was on track but noting some
uncertainty on EBITDA
    ** B&S shares are down 5.9% at 1201 GMT, their lowest since
November 2020
    
($1 = 0.9506 euros)

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))