Manos Chatzidakis – SARANTIS (Q2/H1:21 & Highlights) +Guidance for FY:21

Manos Chatzidakis – SARANTIS (Q2/H1:21 & Highlights) 

During the H1:21 results conference call management clarified significant operational effects and trends prevailing in H2:21.

In specific:
 Guidance for FY:21 CAPEX set at €25mn including maintenance CAPEX and €16.7mn CAPEX recorded in H1:21 (Mainly Pollipak and Greek production machinery upgrade).
 Pressure on gross margin expected in H2:21 as H1:21 was not that much affected due to stock pile up from 2020.
 During H1 no products price increases were taken, which is expected to happen in H2:21 to protect profitability margin (H1:21 EBITDA margin at 16%).
 Top line growth for the FY:21 set at 4-5%.
 Poor performance in SEE markets (in terms of EBIT profitability) attributed to production relocation (Pollipak Poland) raw material price increases and advertising and promotion resurge.
 Strong Greek EBIT margin (excluding Estee Lauder €6.35mn contribution) result of increased productivity, lower unit production cost and operational leverage effect.
 We remain EQUALWEIGHT on the stock and will elaborate announcements in our model and come back with an update.