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Research Tree provides access to ongoing research coverage, media content and regulatory news on COLRUYT SA. We currently have 2 research reports from 1 professional analysts.
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Persistent stunted growth in sales
21 Dec 16
Colruyt’s H1 sales progressed by only 2.6% yoy to reach €4,655m. The Retail and Wholesale division maintained steady sales growth compared to last year (4.1% and 2.9%, respectively) but the Filling stations and other activities showed a 15.6% decline in H1 revenues. The EBITDA margin was almost stable at 8.0% but EBIT lost 20bp to 5.5% due to the underperforming Corporate business. The Belgium retailer still enjoys a strong cash situation despite a higher capex and the increase in WCR. We note, also, the ballooning pension deficit, coming in at €167.2m vs. €83.8m recorded at the end of March 2016.
Tougher year ahead
17 Jul 15
In a challenging Belgian grocery market, Colruyt released revenues up 3% to €8.9bn. Due to the pressure on sales prices, volume growth was not fully reflected in revenue growth. Price pressure was brought about by price deflation, competition and the consumer trend towards cheaper products. The group continued to invest in employees, processes and efficiency gains. These investments and the fact that higher sales volumes were not entirely reflected in revenue growth, caused net operating expenses to rise slightly more than revenue. With the gross margin being in line with the prior year's level, the EBITDA margin remained stable at 7.9% of revenue. On 19 June 2015, Colruyt signed a settlement with the Investigation Service of the Belgian Competition Authority in relation to the period 2002-07. By doing this, Colruyt Group accepts that infringements of the Belgian competition rules were committed in the period 2002-07. However, the group assures that it did not set up a price-fixing scheme with other distributors and suppliers. Colruyt Group wants to refrain from engaging in years of legal wrangling with the government over the substance of the case and over facts that date back more than ten years. It has therefore decided to sign the Investigation Service’s settlement and pay a fine of €36.1m.
Roughly in line with our expectations
23 Feb 17
JM announced FY 16 net result of €593m, of which €232m related to the Moterrorio disposal as exceptional items. The EBITDA margin increased to 5.9%, boosted by the good resilience of Biedronka’s profitability. The cash flow situation improved, leading to a negative net debt. Thanks to stronger cash flow generation, the company proposed a €0.60 dividend per share (flat compared to last year, including the distribution of free reserves of €0.375 per share).
15 Jan 15
Booker has announced a Q3 IMS with trading in line with our expectations. LFL sales growth increased 2.5%, with tobacco sales up 2.4% (a significant improvement on the last quarter) with non-tobacco sales increasing 2.6%. The turnaround of Makro continues and non-tobacco sales declined by 6.5% as Booker exit’s unprofitable lines, whilst 9 Makro stores have converted into a new, improved format. The outlook for profits and net cash for the year remains in line with management’s expectations. Following today update we leave our 2015 forecasts unchanged. We retain our Hold recommendation and 150p target price.
N+1 Singer - Conviviality - Delivering against strategy
30 Jan 17
Interims are robust and broadly in line with our expectations. The 4.4% LFL sales growth and positive KPI’s on customer wins and higher spend per outlet demonstrate that the strategy is working. H2 has started very well with good momentum across all 3 divisions as the new MD’s begin to have a positive impact. With PBT 2/3rd H2-biased we make no major forecast changes but see the risk on the upside. The shares are up 21% YTD but given the positive overall tenor and valuation read-across from the Booker/Tesco deal (24.5x P/E), CVR remains inexpensive on a cal’17 P/E of 11.2x with a 5% DPS yield and a 3 year EPS CAGR of 24%. We stay at Buy with a 290p TP.
Have investors checked out too early?
26 Feb 16
While some of the share price decline from 8p in December can be attributed to dilution from the placing announced that month and general market risk aversion, the current market cap of c.£8m appears not to recognise the progress in establishing a global brand, a range of unique accommodation formats and an ever expanding event programme, moving towards profitability and with exciting prospects.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.