Citi sees European foodservice packagers's sales growth picking up

SIG AG

24/01/2025 09:31

** Citi sees European foodservice packagers gradually
returning to steady growth, with SIG  SIGNC.S  and Huhtamaki
 HUH1V.HE  to report improving LFL sales in Q4 
    ** Sees sequential improvement in LFL growth for SIG (6% in
Q4 vs 5% in Q3) and Huhtamaki (1% in Q4 vs 0% in Q3)
    ** Says lower inflation and end of destocking is restoring
consumer volumes and bolt-on projects are providing incremental
rev
    ** Volume rebates for SIG customers should support revenue,
operating leverage, it says, while Huhtamaki should benefit from
recent declines in opportunity cost of capital (OCC) costs
    ** "The ongoing recovery could gradually support estimates
and sentiment over the course of 2025"
    ** Citi sees attractive entry point for both stocks at
current levels, particularly for longer-term investors, and
reiterates "buy" on both
    

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))