Event in Progress:
Discover the latest content that has just been published on Research Tree
As in H1 23, Bolloré’s statements now solely reflect the performance of Vivendi and of its Oil logistics business. That said, unfortunately for Bolloré, as in H1, oil prices remain well below their 2022 level. It is therefore not surprising that the Q3-23 trading statement came in below its level in 2022. In any case, Bolloré has not given us any clues as to its ambitions for the future now that the sale of its logistics business is about to be completed.
Companies: Bollore (BOL:EPA)Bollore SE (BOL:PAR)
AlphaValue
Having shed its image as a logistics-focused industrial conglomerate, Bolloré is now a mere reflection of Vivendi and its oil logistics business. The bad news for Bolloré is that oil prices have decreased, and the group’s results have obviously been far from stellar. Now that a takeover bid on Vivendi has been ruled out and the company is set to pocket €4.65bn, the question of redeploying the cash is becoming ever more topical.
After a stellar 2022 owing to a buoyant environment, Bolloré returned to normal with revenues down 11% yoy (organic) in the Q1 23. The Logistics division was the main detractor from Bolloré’s performance stemming from falling air and sea traffic in tandem with lower freight rates. The decline in oil prices hampered Bolloré Energy, which recorded a 16% organic decline. The slight bright spot is the communications division, up 2%.
In the space of two years, Bolloré has completely reshuffled its portfolio from being a logistics giant industrial conglomerate to a media company, so to speak. After the sale of its historical logistics activities in Africa to the Italian shipowner MSC, it is now the balance of the logistics activities that are going to be taken off the table. While the proceeds of the previous operation were redistributed to shareholders, these could end up financing a Vivendi takeover.
Having sold the logistics activities in Africa, it is now the turn of the whole Transport and Logistics division to leave the Bolloré portfolio. Bolloré announced today that it has entered into exclusive negotiations with the CMA CGM Group to sell its Transport & Logistics business for a €5bn cash-free/debt-free enterprise value. This move comes as a surprise given Bolloré’s long-standing appeal in the sector and its leadership position, but does make sense from a financial perspective.
Despite not being as impressive as 2021 with the spin-off of UMG, 2022 remains a milestone year for the industrial conglomerate which saw the handover of its historic chairman and the exit from Bolloré’s African logistics business. While we had been wondering about the HoldCo’s next moves with its pockets now filled, Bolloré will propose a simplified cash tender offer for c.10% of its share capital. The outlook for 2023 looks less promising with an expected drop in oil prices, freight rates and
Much like 2021, 2022 will be a milestone for Bolloré, marked by the transfer of the group to the new generation in February and the closing of the Bolloré Africa Logistics chapter. We see this €5.7bn deal, which opens the door to the reshuffling of the HoldCo’s portfolio, as positive from both a financial and a timing point of view. Combined with the record results expected for 2022, we reiterate our favourable opinion on the stock.
Bolloré closed another upbeat quarter, posting impressive revenue growth of 16% lfl yoy in Q3. Again this quarter, Transport & Logistics and Oil Logistics were the main growth drivers, benefiting from higher freight rates and the sharp rise in oil prices. But as the acquisition of the Bolloré Africa Logistics division by MSC looms, oil prices might revert back, and since Vivendi did not perform so well this quarter, questions are being raised about the sustainability of Bolloré’s growth.
Bolloré closed an upbeat H1 2022, posting impressive growth in revenues, EBITDA and net income. Transport & Logistics and Oil Logistics were the main drivers of these record results, both of which benefited from the current economic climate: higher freight rates and a sharp rise in oil prices. All in all, impressive results that should please investors.
Bolloré closed an impressive Q1 with strong revenue growth across all divisions. The group’s Transport and Logistics activity was boosted by the increase in freight forwarding and the Oil Logistics activity was supported by the strong rise in oil prices in the context of the war in Ukraine. The electricity storage and systems business also witnessed a boost in sales with higher sales of buses, plastic films and specialized terminals.
Bolloré’s 2021 was a milestone year, marked by the successful spin-off of Vivendi’s crown jewel UMG and the surprising announcement of a potential exit of Bolloré’s historical African logistics business. The 2022 outlook will be marked by this major deal, opening the door for a complete revamp of the HoldCo’s portfolio in the hands of the new generation, which formally took over the family endeavour in February.
Bolloré closed an upbeat Q3, posting impressive revenue growth for its Transportation & Logistics business, as well as a sales surge for Oil Logistics boosted by rising oil prices. On the Vivendi side, the de facto takeover bid of Lagardère following its agreement signed with Amber Capital points to the family’s next major move after the successful completion of the UMG spin-off, which has led to the Bolloré parent holding an 18% stake on the now independent crown jewel.
Bolloré could be looking to exit its long-standing logistics activities in Africa according to French media. Although the company has not commented on the matter — so it remains all speculation — we see this potential move as a clear positive. Bolloré is faced with the high capital intensity of the business while affronting competitive pressures from deeper-pocketed and expanding rivals. Supportive valuations for logistics & port operators and the upcoming departure of Vincent Bolloré suggest th
In a letter addressed to Vivendi, Bolloré has committed to not ask the French market authority (AMF) for an exemption of launching a takeover bid on Vivendi, triggered if the HoldCo finds itself crossing the regulatory threshold of 30% of the share capital.
Bolloré closed a strong first quarter for its Transportation and Logistics division, partly offset by the weakness from Oil Logistics, while Vivendi was led once again by top performer UMG (soon to be spun-off). The transport and logistics activity outperformance was driven by the strong trading environment stemming from global inventory rebuilding efforts as cyclical sectors emerge from a post-pandemic slumber, a trend that should extend through H1 21.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Bollore. We currently have 18 research reports from 2 professional analysts.
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
Companies: Renold plc
Cavendish
Companies: BILN ELCO NXQ CUSN ATG
FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively
Companies: Billington Holdings Plc
Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
Companies: Plant Health Care PLC
Companies: 88E RNO TRIN KRM EXR BOOM
Companies: Iofina plc
Canaccord Genuity
Companies: PLL TLG HZM SAV KAV KP2 SVML
SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
Companies: Severfield Plc
Progressive Equity Research
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Edison
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Liberum
Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first
Companies: Itaconix plc
Companies: ATOME PLC
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
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Share: