Germany's Surteco H1 sales decline on impregnates exit
Germany's Surteco H1 sales decline on impregnates exit
Overview
Germany surface technology supplier's H1 sales fell 4% yr/yr, mainly on discontinued impregnates business
Adjusted EBITDA for H1 rose 5% as margins improved
Company confirmed full-year sales and adjusted EBITDA guidance
Outlook
Surteco confirms full-year sales forecast of €780 mln to €830 mln
Company maintains adjusted EBITDA guidance at €70 mln to €90 mln for the yr
Company sees no significant upturn in demand in sales markets
Result Drivers
DISCONTINUED BUSINESS AND FX - Sales declined mainly due to the discontinuation of the impregnates business and negative exchange rate effects
MARGIN IMPROVEMENT - Adjusted EBITDA margin increased as countermeasures began to show results, including actions to address rising raw material prices
SEGMENT PERFORMANCE - All segments except North America increased earnings, with Edgebands and Profiles showing notable growth
Company press release: ID:nEQ95BpfGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales |
| EUR 420.80 mln |
|
H1 Loss Per Share |
| EUR 0.19 |
|
H1 Net Loss |
| EUR 3 mln |
|
H1 ADJ-EBITDA |
| EUR 53.20 mln |
|
H1 Pretax Profit |
| EUR 1.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "buy"
Wall Street's median 12-month price target for Surteco Group SE is €20.20, about 127% above its July 30 closing price of €8.90
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 12 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)