SES Imagotag slides on 'disappointing' VAS unit, sales slump outside EMEA

Vusion SA

27/10/2023 12:14

** Shares in SES Imagotag  SESL.PA  fall nearly 6% after the
French label maker posted flat Q3 sales reflecting strong
decline outside of EMEA and little change to its VAS unit
    ** It reports Q3 sales at 182.5 mln euros ($192.7 mln), up
0.4% from last year, on an order intake of 192 mln euros
    ** "Reported sales and order intake were c8% and c19% below
our estimates respectively," Berenberg says
    ** A EuroLand analyst points to the big drop outside of EMEA
and "disappointing" VAS performance, saying the market is
"probably feeling this and remains cautious in the current
environment"
    ** Sales in the EMEA region rose 12.9% yoy, but fell nearly
40% in the rest of the world
    ** The software, services and non-ESL solutions unit, known
as VAS, continued to struggle as retailers slowed down or
postponed projects in tough macro context
    ** VAS recorded Q3 sales of 27 mln euros, making up 14.8% of
group total, which Berenberg notes shows "no significant yoy
change"
    ** The share price has fallen about 25%, or 30.5 euros,
since the start of 2023

($1 = 0.9472 euros)

 (Pierre John Felcenloben)
 ((Pierrejohn.felcenloben@thomsonreuters.com))