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Quadient delivered a lacklustre trading update with sales being heavily affected by currency exchange rates but, above all, we see the growth engines stalling. Fortunately, the historical MRS business has allowed the company to maintain its EBIT outlook for FY23 despite lowering its organic sales growth forecast. Nonetheless, we are worried that the growth for 2024 might be decelerating, especially for software.
Companies: Quadient SA
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Quadient delivered decent H1 23 results with a tiny miss on sales and profitability. The company unveiled unwelcome accounting irregularities in two subsidiaries in Italy and Switzerland which cast shadows on the reporting representativeness of the accounts. Investors have not appreciated this as the stock is down 2% today despite confirmation of guidance for 2023.
A decent start to the year, led by strong growth in the software and parcel locker segments, particularly in the US, have enabled Quadient to maintain its FY23 guidance. A shrinking Mail business and disappointing European sales explain the slight underperformance relative to the guidance.
Quadient’s FY22 results were in line with the consensus. Two years after the second phase of the business evolution, this is a turning point for Quadient as its divests its last non-core activities and the future seems to be taking a positive turn. The group is proposing a dividend of €0.60 per share, which is 9% higher than last year. The stock is up 1.5% today.
A rather disappointing 9-month 2022 trading update; a weaker-than-anticipated Q3 performance in Parcel Locker Solutions (linked to delays in US projects) and an uncertain level of backlog reduction in Q4 (backlog level at over +40% vs. 9-month 2021) have resulted in downgraded FY22e guidance. The stock fell to its lowest level since November 2020.
Quadient’s H1 22 results were acclaimed by investors this morning, as revenues got back to organic growth in Q2 (+2%) after a 0.6% decline in Q1. The company re-affirmed its FY22 guidance, and said it anticipates an improvement in profitability in H2.
Quadient managed to post a slower-than-expected organic decline in a tough quarter (difficult macro-environment + high comparison basis). As the company has not experienced any further deterioration in supply chain conditions, the FY22e guidance has been confirmed.
Quadient’s FY21 results meet expectations in all respects. Despite the current geopolitical uncertainties and ongoing supply-chain issues, the company expects to post organic growth in line with current market expectations in FY22e. The possibility of share buy-backs, which management has not ruled out, is the main bright prospect. The stock is up 4.3%.
Quadient reported a rather disappointing Q3 21 trading update; the stock fell more than 9% after cutting the FY21e outlook on supply-chain issues.
Quadient raised its FY21e guidance yet again on the back of strong H1 results. However, the upgrade was seen as overly prudent. The stock is down 5%.
Quadient share price soared by 18% yesterday following the publication of its trading statement. The group raised its guidance for the fourth time in 6 months after beating expectations in Q1 21 across all business lines and geographies. Investors notably welcomed the return to growth in the Mail-Related business, which has been in structural decline for years.
Quadient published satisfactory FY20 results, which were broadly in line. While the mail legacy business continued to weigh on the performance, the group recorded a good recovery in H2 thanks to its ‘growth engines’, Business Process Automation and Parcel Lockers Solutions. The financial position remains sound. Investors were nevertheless disappointed by the dividend (€0.50/share). A detailed guidance was disclosed as part of the second phase of the ‘Back to Growth’ strategic plan, focusing on
Quadient beat expectations in Q3, led by the strong organic growth performance of its ‘growth engines’, Business Process Automation and Parcel Lockers Solutions, giving further validity to the group’s transformation strategy as outlined by the Back to Growth plan. Meanwhile, PE interest for Quadient’s Customer Experience Management solution puts in evidence the value behind the group’s digital-led businesses, even if the division is clearly not for sale.
Quadient released mixed H1 results, with sales being dragged by the weak performance of the mail legacy business, in spite of the resilience shown by the Parcel Locker and Business Process Automation divisions. While profitability also suffered, cash generation was surprisingly sturdy, led by diligent cost cutting and favourable working capital movements. Given the increased visibility, the announced FY20 guidance stands only slightly above our current conservative estimates, leaving room for Qu
Quadient’s Q1 results put in evidence that, while still dependent on its legacy mail-related business, the group’s focus on its ‘growth engines’ and pursuing a recurring-revenue business model help mitigate shocks such as the current economic and sanitary crisis. Nonetheless, the full impact on Quadient’s activities remains uncertain, and the very early signs of recovery in late May point to another difficult quarter.
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