TKH drops as raw material costs, supply chain issues hit margins

TKH

15/11/2022 09:19

** Shares in TKH Group  TWKNc.AS  fall about 4% after the
Dutch tech company's Q3 margin dropped as raw material prices
and supply chain constraints offset sales growth 
    ** The stock is on track for its worst day since mid-June
        ** Q3 sales grew 16.7% on the year to 451.2 million
euros ($469.70 million), with EBITA also up, but the EBITA
margin dropped to 12.2% from 13.7% last year
    ** Berenberg analyst Trion Reid says he suspects the EBITA
margin contraction, despite strong sales growth, is a possible
reason for the negative share price reaction
    ** KBC Securities says EBITA growth of 4.4% year-on-year is
"modest", also pointing to the margin drop 
    ** TKH reiterates its 2022 outlook 
($1 = 0.9606 euros)
 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))