Netherlands' Sligro Food H1 EBIT falls on cost inflation
Netherlands' Sligro Food H1 EBIT falls on cost inflation
Overview
Netherlands food wholesaler's H1 revenue was flat, EBIT declined to €2 mln
Company cites falling consumer confidence and cautious spending in Netherlands and Belgium
Sligro to continue dividend and share buyback program, citing strong balance sheet
Outlook
Company expects continued cautious consumer spending due to high costs and low confidence
Sligro sees Belgian market volumes declining by 3% to 5%
Company expects strong balance sheet and cash flow to support dividend and share buyback
Result Drivers
FALLING VOLUMES - Co said lower sales volumes in the Netherlands and Belgium, due to cautious consumer spending, weighed on results
COST INFLATION - Rising labour and transport costs, up close to 4%, further pressured profitability
BELGIUM MARKET DECLINE - Co said Belgium saw a bigger drop in market volumes, estimating a 3-5% decline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 EBIT |
| EUR 2 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy."
Wall Street's median 12-month price target for Sligro Food Group NV is €13.75, about 19.4% above its July 22 closing price of €11.52
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 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.)