BIC: Reassuring Q3 lfl growth, FX played positively on margin improvement
NEUTRAL, Fair Value EUR91 (+8%)
Although lfl growth totalled 3.5% in Q3, above the consensus figure (+2.8%) and pretty much in line with our forecast (+3.7%), reported sales came in at EUR470.4m, falling short of the consensus estimate for EUR483m. This deviation stemmed from a worse than expected FX impact (-7.3% vs. BG: -5% and CS: -4%). The Q3 normalised IFO margin of 20.4% was significantly higher than expected (CS: 19.2%), implying a 70bp increase vs. the previous year. The group has reiterated FY 2013 sales and normalised IFO guidance. Conference call today at 4pm (CET).
Full report available to subscribers
Please contact email@example.com