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IBERIAN DAILY 24 JULY + 2Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, BANKING SECTOR, CELLNEX.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 2Q’23 results to be released over the coming days in Spain.

All eyes on Central Banks this week
Global stock markets ended the week flat, waiting for the solid inflation data to end the Central Banks’ rate hikes. Among the Euro STOXX sectors, the gains were led by Pharma and Energy, whereas Technology and Basic Resources ended with the biggest drops. On the macro side, in the UK June’s retail sales came in above expectations, especially excluding the most volatile components. In Spain, despite the conservative PP’s victory in the general election, the liberal PSOE’s resilience was surprising, and PM Pedro Sanchez could maintain the Govt. if the party drums up enough support. In Japan, the manufacturing PMI fell slightly more than expected, whereas services only fell -0.1% in July. On the geopolitical side, the Russian energy minister, A. Novak, did not rule out the possibility of setting quotas on fuel exports. Separately, the Russian army bombed grain ports in southern Ukraine after withdrawing from the deal to export grains via the Black Sea. In US business results, American Express was in line with expectations.
What we expect for today
European stock markets would open with moderate losses (-0.25%) in a week of key events (Fed, ECB, BoJ meetings). Currently, S&P futures are flat (the S&P 500 ended -0.30% lower vs. the European closing bell). Volatility in the US fell (VIX 13.60). Asian stock markets are mixed (China’s CSI 300 -0.30%, Japan’s Nikkei +1.25%).
Today in the euro zone we will learn July’s preliminary manufacturing and service PMIs and in the US June’s Chicago Fed index. In US 2Q’23 Results, Whirlpool and Domino’s Pizza, among others, will release their earnings. In debt auctions: Germany (€ 5 Bn in 6M and 12M t-bills).


COMPANY NEWS

ALMIRALL. Better 2Q’23 Results on the operating level. Guidance’23 unchanged. BUY.
2Q’23 Results came in above expectations on the operating level (EBITDA € 50 M vs. € 45 M BS(e) and € 44 M consensus) and in margins (21% vs. ~19.8% BS(e) and consensus). Net Profit was lower than expected (€ 4 M vs. 5 M BS(e)) due to higher taxes (66% effective rate vs. 50% BS(e)) and cash was in line with expectations (net cash € 31 M vs. € 12 M BS(e)) due to the € 200 M capital increase (June’23). Despite the lacklustre share price performance (-2% since 1Q’23 Results, -7% vs. IBEX), we do not foresee a relevant market impact after reiterating its 2023 guidance (low-mid single digit sales growth and between € 165 and € 180 M of EBITDA vs. € 176 M BS(e) and consensus).