Barco FIRST LOOK: 1Q24 orders and sales below our and CSS forecasts

As well 1Q24 orders (€ 220.1m vs 236.5m CSS) as 1Q24 sales (€ 195.9m vs € 213.3m CSS) were below our and CSS forecasts. Although 2Q24 will not show growth, Barco still confirms the FY24 guidance, assuming markets do not further deteriorate. 1Q24 was marked by an anticipated inventory destocking by Barco's customers in Meeting Experience and Healthcare. Barco expects this to be largely completed by mid-year. In Entertainment, demand was hampered by the aftermath of the strikes in the North-American film industry, and customers delaying orders in anticipation of Barco's new product launches. Barco stressed they have a broad funnel of new product introductions in all its divisions, which should form a solid foundation for resumption of its growth from 2H24.