EUR 100.00 For Business Accounts Only

IBERIAN DAILY 31 JANUARY + 4Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRUPO CATALANA OCCIDENTE, PUIG BRANDS, SACYR.


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 4Q’24 results to be released over the coming days in Spain.

European stock markets continue to rally
The main European stock markets rallied once again, with the MIB lagging slightly. In the STOXX 600, Real Estate and Media led the gains (near +2.0%), whereas Travel & Leisure and Banks brought up the rear with slight gains of +0.1%. On the macro side, general inflation rose more than expected, but the core figure fell to 2.4% YoY from the previous 2.6%. In the euro zone, the ECB cut rates by -25bps, as expected, and left the door open to continued cuts. The 4Q’24 GDP stagnated, dragged down by the contraction in France and Germany, whereas the economic sentiment index rose more than expected in January. In the US, the 4Q’24 GDP rose less than expected, where private consumption was the engine, offsetting the drop in capital goods investments and the increase in imports. In Mexico, the 4Q’24 GDP stagnated unexpectedly. In Japan, December’s retail sales grew more than expected. In US business results, IBM soundly beat expectations, Caterpillar and Mastercard came in slightly above and Apple was in line with expectations, but with worse sales figures than expected.
What we expect for today
Stock markets would open with slight gains that would ease throughout the session. Currently, S&P futures are up +0.29% (the S&P 500 ended +0.14% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 closed and Japan’s Nikkei +0.43%).
Today in Germany we will learn the unemployment rate and January’s preliminary inflation and in the US January’s Chicago PMI and personal outlays, along with December’s consumption deflator. In US business results, Intel, Exxon, Chevron, Colgate-Palmolive and AbbVie, among others, will release their earnings.


COMPANY NEWS

PUIG BRANDS 4Q’24 sales beating expectations, with LfLs speeding up OVERWEIGHT
The company released better 4Q’24 results than expected, with +14.1% LfL growth (vs. >+9% BS(e)), meaning significant acceleration vs. the +11.6% seen in 3Q’24. This was driven fully by Fragrances, with +21% comparable growth (vs. +11.1% in 3Q’24; +13.6% in 2024), as well as the division’s strong trends in EMEA (~55% sales; +12.4% comparable in 4Q’24) and the Americas (~36%; +16.1% comparable in 4Q’24). By contrast, as expected, Make-up (~17% sales) fell more than -7% comparable in 4Q’24 (hit by the comparison basis and the voluntary recall of a Charlotte Tilbury product in December). The company has ended 2024 with +10.9% LfL growth and confirms the guidance’24 of a stable adjusted EBITDA margin (in line with our estimate). We expect a positive reaction, thanks both to the acceleration shown on the quarter and the continued strength in the Fragrances segment, with double-digit growth and a growing market share.