Euroapi tumbles after profit warning
15/03/2024 10:12
** Shares in Euroapi EAPI.PA fall 26% to the bottom of
French SBF 120 .SBF120 index after the group suspended its
guidance for FY 2024
** French active pharmaceutical ingredients (APIs) supplier
said the decision follows the temporary halt at its Italian site
in Brindisi, which is currently under investigation
** The group expects the suspension of production in
Brindisi to impact its operational and financial performance
** J.P. Morgan sees potential for around 4% cut to 2024
sales and around 30% cut to 2024 consensus core EBITDA
forecasts, if production does not restart within the next 9
months
** "Euroapi will initiate external quality audits at all of
its other sites, but the results of these audits are not
expected before the new 2024 guidance, and details of the
strategic review will be shared during 2Q24, which creates
further uncertainties", Deutsche Banks says
** Euroapi's shares fell to all-time-lows at the end of last
month after the group cut its 2024 guidance
** Including today's fall, the stock has dropped by 56.77%
since the beginning of the year
(Reporting by Alban Kacher)
((Alban.kacher@thomsonreuters.com))