Deceuninck falls as cautious outlook, economic slowdown weigh

Deceuninck NV

17/08/2022 09:47

** Shares in Deceuninck  DECB.BR  are down 8.4%, set for
worst day since May 2019, as the Belgian designer and producer
of PVC systems remains cautious on the rest of 2022 despite
strong H1  urn:newsml:reuters.com:*:nL8N2ZT26U
    ** Its H1 sales https://deceuninck.com/en/show-press.aspx?id=393&language=EN
 reached EUR 489 mln ($497 mln) vs 404 mln last year, while adj.
EBITDA rose 11% to EUR 56.8 mln, both excluding IAS29 effects
    ** "Strong set of results," ING comments, pointing to sales
beat of 4.4% and adj. EBITDA 19.6% above a company-compiled
consensus
    ** "We however see some negatives to this press release,
mainly demonstrated in our view by the requirement to adopt
IAS29 (hyperinflation accounting) in Turkey given current
economic circumstances," ING adds
    ** The management says it remains cautious on business
development in Turkey due to current inflation levels and the
impact on consumer confidence
    ** The company also says the lower demand in the U.S.
related to the economic slowdown will impact volumes in H2
    ** Including Wednesday's fall, the stock is down around 24%
year-to-date

($1 = 0.9840 euros)

 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))