Colruyt’s performance in H2 FY19/20 was below our expectations, largely due to a soft performance by the retail segment. Perhaps, investors were also spooked by 40bp erosion in the Belgian market share (vs H1 FY19/20). We believe the top line will remain under competitive pressure in the forecast years. The recent improvement in the gross margin is also unlikely to make an impactful contribution to the bottom line, in our opinion.
17 Jun 2020
Colruyt ends FY19/20 on a softer note
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Colruyt ends FY19/20 on a softer note
Colruyt Group N.V. (COLR:WBO) | 0 0 0.9% | Mkt Cap: 6,630m
- Published:
17 Jun 2020 -
Author:
Nishant Choudhary -
Pages:
3
Colruyt’s performance in H2 FY19/20 was below our expectations, largely due to a soft performance by the retail segment. Perhaps, investors were also spooked by 40bp erosion in the Belgian market share (vs H1 FY19/20). We believe the top line will remain under competitive pressure in the forecast years. The recent improvement in the gross margin is also unlikely to make an impactful contribution to the bottom line, in our opinion.