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.
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.