Fagron's margins pressured by the pandemic, shares slip

Fagron NV

05/08/2021 09:07

** Shares in Fagron  FAGRO.BR  edge down 1%, paring earlier
losses of as much as 5.1%, after it H1 results come below
expectations and margins suffer from pandemic effects
 urn:newsml:reuters.com:*:nASN001ISQ
    ** The Belgium-based company, active in the healthcare
sector, published H1 gross margin for 140 bps to 58.4%, due to
"temporary COVID-related impact"
    ** KBC Securities notes that COVID-19 is affecting pricing
of certain raw materials and packaging materials, with an
estimated 100 bps impact on gross margin due to increased
pricing
    ** Fagron also publishes H1 REBITDA at 56.0 million euros
($66.30 million), net profit at EUR 26.9 mln
    ** ING flags REBITDA is substantially missing consensus by
8%
    ** "One clear theme in Fagron's 1H21 update is pressure on
REBITDA margin across the board, resulting in a bottom line
significantly below expectations," KBC adds
    ** Including Thursday's losses, stock is down 9.9%
year-to-date
    


($1 = 0.8446 euros)

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