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).
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