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LOGISTA: 2Q’21 RESULTS (ANÁLISIS BANCO SABADELL)

2Q'21 vs. 2Q'20 Results
Sales: € 298.9 M (+8.9% vs. +5.0% BS(e));
EBIT: € 70.3 M (+38.7% vs. +24.9% BS(e));
Net Profit: € 42.5 M (+48.1% vs. +31.4% BS(e));
1H'21 vs. 1H'20 Results
Sales: € 599.8 M (+5.8% vs. +3.9% BS(e));
EBIT: € 138.0 M (+23.1% vs. +16.9% BS(e));
Net Profit: € 87.8 M (+33.2% vs. +25.9% BS(e)).

The company has released 2Q’21 above expectations with +39% adjusted EBIT growth (BS(e) +25%). Even though the improvement is largely explained by the comparable basis (€ -5 M of one-off expenses were accounted in 2020 due to Covid-19) and by a variation effect in the inventory level (€ +3 M in 2021 vs. -6 in 2020), we believe these are good results.
Economic sales grew +9% in 2Q’21 standalone thanks to increased revenues from e-commerce distribution (last mile) in pharma distribution, the development of services for manufacturers, and a better performance in tobacco volumes distributed in France as a result of mobility restrictions, especially those affecting the borders. Additionally, the company has been able to reduce the cost base.
The company has raised its estimate for adjusted EBIT to low double-digit growth (vs. high single-digit growth, +6% BS(e) and +7% consensus), although it warns that there is a high level of uncertainty as to how the pandemic and the economy will evolve, and for this reason it will revise its guidance on a quarterly basis. We expect a good share price reaction despite the stock having risen by +17% YTD (+6% vs. IBEX35). BUY. T.P. € 24.23/sh. (upside +37.67%).