Stratec falls on downbeat H1, 2023 outlook cut

Stratec SE

19/07/2023 07:24

** Shares in Stratec  SBSG.DE  fall around 10% in early
Frankfurt trade after the German biomedical technology company
reported H1 results below its expectations and cut FY guidance
    ** Based on preliminary figures, H1 sales fall 9.1%
year-on-year in constant currency to 125 million euros ($140.3
million)
    ** It expects H1 adj. EBIT margin of 5.6%, vs 15.4% in the
same period last year
    ** "Overall, the results for the first half of 2023 are
slightly lower than the most recent expectations of the
company," Stratec says, citing lower demand, adding it expects
customer order behaviour to remain "volatile"
    ** It expects 2023 consolidated sales to "remain stable or
grow slightly" on a constant-currency basis, compared to prior
outlook for 8%-12% growth
    ** It sees FY adj. EBIT margin at around 10.0%-12.0%, vs
previous forecast of around 12.0%-14.0%
    ** "Warning not completely out of the blue but weaker than
expected," says a local trader
    ** Stratec hits the bottom of German small-cap index
 .SDAXI  in early trade, on track for its worst day since March

($1 = 0.8909 euros)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))