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Buzzi’s H1 23 results showed net sales up by 14.3% despite a lower sales volume, thanks to price increases. The high cost of inflation was offset by price hikes, resulting in an increase to EBITDA and a 7.2pp margin increase. Costs are stabilizing in 2023, at a level higher than in 2022. As the company will focus on margin stability, we expect prices to follow a similar trend. Thanks to these strong results, Buzzi has upgraded its guidance.
Companies: Buzzi Unicem (BZU:BIT)Buzzi Spa (BZU:MIL)
AlphaValue
Buzzi’s FY22 results showed net sales up 16% despite a lower sales volume, thanks to price increases and the positive impact of FX. The high cost of inflation put downward pressure on EBITDA, resulting in an 80 bps margin decline. Energy prices are expected to stabilize in 2023, at a level higher than in 2022. As the company will focus on margin stability, we expect these high prices to continue.
Buzzi released its H1 results with net sales up by 17% despite a decline in volume sales. Due to high cost inflation, EBITDA grew disproportionally by only 4%, registering a margin decline of 250bp. High D&A&I costs led to a 58% decline in reported NI but it will not impact our NI because it is adjusted for impairments. Following this result, we will revise our estimates upwards to resonate with management’s guidance of a flat lfl EBITDA for FY22.
Buzzi released its Q1 trading statement with net sales up by 17.2% (+14.5% lfl), the growth being driven mainly by Eastern and Central Europe as well as the US. The company has reiterated its outlook for the full year and, additionally, has introduced quantifiable sustainability targets for 2030 and 2050, in line with its peers and in accordance with the Paris agreement. We leave our estimates unchanged following this trading update.
Buzzi published a good set of results. It observed net sales growth in all four regions, reaching €3,446m (+6.9% yoy) and an organic EBITDA growth of 4.2% yoy. Buzzi generated ~€600m of net cash from operations and has proposed a dividend of €0.4/share (+60% yoy). For 2022, Buzzi expects a continuity in the demand momentum but operating margins will be significantly impacted in Russia, Ukraine and Italy due to the war.
Buzzi released its H1 results with net sales up by 5.8% (+4.5% lfl), the growth driven mainly by Italy, which benefited from the strengthening in domestic demand and an easy comparison base. FX had an unfavourable impact of €81m and €22m on sales and EBITDA, respectively. For the full year, EBITDA is still expected to be below FY20’s level.
Buzzi released its Q1 trading statement with net sales down by 0.8% (+4.5% lfl), the growth driven mainly by Italy, which benefited from the strengthening in domestic demand and an easy comparison base. FX had a significant impact of -5% on sales. Buzzi has reiterated its outlook for the year.
Buzzi published a good set of results. Despite the pandemic, it achieved flat sales and an EBITDA growth of 7% yoy. Along with strong operating cash flow generation, Buzzi also benefited from the sale of Kosmos Cement’s assets (+€103.6m impact on net income). It has a strong cash position, with net debt down from €568m to €242m, and Buzzi is forwarding the benefits to the shareholders through a higher dividend and a share buy-back programme.
Buzzi announced 9m sales figure that were in line with last year’s, following which management now expects the recurring EBITDA to be in line with last year’s level instead of a 5-10% decline as guided during the H1 results. Following this trading update, we will revise our numbers upwards.
Companies: Buzzi Spa
Buzzi announced a good set of results with a strong performance registered in the US due to higher demand, supportive pricing, tailwind from input costs and favourable FX. However, management has a conservative outlook for the US for H2, which largely contributes to its EBITDA outlook of -5-10% yoy. Buzzi’s results were better than expected and, hence, we will be updating our numbers upwards.
Buzzi released its Q1 trading statement with net sales up by 2.5% lfl, benefiting from favourable pricing, especially in Eastern Europe, and favourable weather in the US. Italy was significantly impacted by the lockdown and, even if the production activity returns to normal, domestic sales are most likely to remain below the 2019 level in Italy. Buzzi will provide some guidance post H1, after some more visibility.
Buzzi announced its 2019 preliminary results. Total sales were €3.2bn, up by 12.1% (8.6% like for like). The company performed below our expectations in all regions, except for the US where its sales were 7.5% above our expectations. The prime contributor to the higher sales wasn’t volume growth or price increase, but rather the strengthening of the USD. Management confirmed its recurring EBITDA at ~€700m. The minor tweaks to the model will not change our recommendation of SELL.
Management believes that the recurring EBITDA of FY19 will be higher than that assumed in the guidance previously disclosed to the market. Following this earnings release, we expect to increase our target price by some 5-10%. This should trigger a change in recommendation from Sell to Reduce.
As expected from the good earnings release of HeidelbergCement, earlier in the same day, in North America thanks to good weather, Buzzi posted outstanding growth in Q1 19 with an increase in sales of 17.6% lfl. Following this release, we will increase our EBITDA forecast by some 5% with an expected similar impact on the target price. However, we don’t intend to change our Reduce recommendation.
Cement capacity is excessively dependent in terms of profitability on the US and Mexico: virtually all profits stem from these two countries. Hence, as North America has reached a high point in the cycle and with the inversion of the yield curve, a recession could occur. As a consequence, we expect to change our recommendation from Add to Reduce.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Buzzi Spa. We currently have 26 research reports from 2 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
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Liberum
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Cavendish
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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