Robust Q4 sales match guidance.
Robust Q4 sales match guidance.EARNINGS/SALES RELEASES
Chargeurs releases robust Q4 2017 sales in line with its previous guidance. It once again confirms the strength of its Protective Films business.
FACT
Chargeurs releases robust Q4 2017 sales in line with its previous guidance. It once again confirms the strength of its Protective Films business.
ANALYSIS
The above sales total will not be a departure from management guidance. Essential comments will be about the impressive growth pace posted by Protective Films quarter after quarter (+9% over Q4), the ability to defend flat yearly sales in Fashion Technologies while 2016 was a high base and the adverse US$ impact at c.-1.3% over the year.
The lfl 7% annual growth of Protective Film sales is significant not only because it is Chargeurs most important business and cash flow machine but also because it has coped easily with a stream of acquisitions that could have been disrupting its operational performance. We understand that this division management has found the daily tweaks to face tighter capacity usage in a strong demand context.
IMPACT
Recurring earnings are indicated at at least €43m. This matches our recently trimmed forecast which stood above earlier guidance. While this is extremely satisfactory, it is increasingly clear that the ambitious growth plans involving heavy opex and capex will mean that the next two year bottom line growth will be more measured. We do not change our numbers before the 2017 release (7-03-2017)
Chargeurs SA is a France-based company, which provides customizable specialty material solutions. The Company and its subsidiaries operate in four sectors: Protective Films, Fashion Technologies, Museum Solutions and Luxury Materials. Protective Films designs, produces and markets technical solutions to protect the quality of steel, aluminum, plastic or other surfaces during the transformation process, as well as film application machines. Fashion Technologies produces and markets linings for clothing. Museum Solutions includes the industrial divisions Senfa, specialized in the functionalization of technical textiles, and Chargeurs Creative Collection, specialized in the provision of services to cultural institutions. Luxury Materials manufactures and markets combed wool ribbons. The Company is active globally.
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