France's Savencia H1 sales rise on integration of chocolate activities and Quata acquisition
France's Savencia H1 sales rise on integration of chocolate activities and Quata acquisition
Overview
France dairy and specialty food producer's H1 sales rose 2.6%, driven by acquisitions
Current operating profit fell due to surplus milk supply and negative integration effects
Net income group share was nearly stable at €38 mln
Outlook
Company did not provide specific guidance for the current quarter or full year
Result Drivers
ACQUISITIONS BOOST REVENUE - Integration of SAVENCIA Gourmet Chocolate activities and acquisition of Quata in Brazil drove reported sales growth
WEAK DEMAND IN EUROPE - Cheese activities in Europe impacted by fragile consumption and pressure on purchasing power, reinforced by Middle East conflict
MILK SURPLUS AND INTEGRATION COSTS - Operating profit fell due to surplus milk supply, saturated demand, and negative effects from chocolate activities integration
Company press release: ID:nGNE8lZhq8
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales |
| EUR 3.49 bln | EUR 3.49 bln (1 Analyst) |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Savencia SA is €79.00, about 27% above its September 9 closing price of €62.20
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)