Bois Sauvage FY23: Lack Of LT Strategy Convinces Us Of A Lower TP

During FY23, Bois Sauvage booked a negative net result of –€27.8m (vs. €108.1m during FY22) due to significant losses in fair value in its real estate business and in its stake in Umicore (-€37.3m). The chocolate business achieve a YoY top line growth of +7.9% while net income remained stable thanks to the several brand's ability to absorb/pass on inflation while the shareholding in Ecuadorcolat helped keep cocoa prices stable. Also, a recovering M&A market during FY24 should benefit Berenberg. While Bois Sauvage has some attractive assets in its portfolio, the lack of a clearly communicated strategy for the group impedes the market from identifying short and medium-term triggers for the group which in turn puts downward pressure on the stock. We reiterate our accumulate rating but lower our TP to €310.0.