Company news and results
This week it’s all about capital markets days.
Adevinta, the online classifieds company, introduced a new strategy at its Capital Markets Day:
Focusing the portfolio, by investing in and growing our five Core markets of Germany, France, Spain, Benelux and Italy
Concentrating on high-quality verticals: Motors and Real Estate, that present a significant opportunity to increase monetization
Motors is 40% of core markets revenue and is expected to double by 2026.
Becoming fully transactional in consumer goods, expanding into a growing and profitable online commerce market; and
Leveraging technology and transforming advertising to preserve revenue and adapt to the evolving market
They are targeting average annual revenue growth of approximately 15% in their core markets, EBITDA margins of c.40-45%, Net Debt / EBITDA of 2x - 3x in the medium term.
Schneider Electric expects revenue to accelerate to +5% to +8% on average to 2024:
2022 – 2024 Targets:
Organic revenue growth of between +5% to +8%, on average
A yearly organic improvement of between +30 bps to +70 bps in adjusted EBITA margin
c.€4 billion Free Cash Flow by 2024
Safran, the aircraft equipment manufacturer, hosted a Capital Markets Day.
Their targets:
Organic revenue growth: 10+% CAGR 2021-2025 (at a €/$ spot rate of 1.20), including civil aftermarket revenue growing around 15% CAGR over the period
Recurring operating income margin: 16-18% by 2025 (at a €/$ hedge rate of 1.16)
Strong cash generation driven by growing EBITDA and a good control of working capital needs: EBIT to FCF conversion of 70% on average during 2021-2025
Bureau Veritas, the testing, inspection and certification company, guided for mid-single-digit organic growth to 2025 at its investor day. They are also targeting an operating margin above 16%.
Exor will have €9bn cash to deploy following the sale of PartnerRe. They will focus on acquisitions in Healthcare, Luxury and Technology.
Scout 24, the owner of the leading online platform for real estate in Germany, hosted a Capital Markets Day. In 2022, they expect revenue to increase between 11% and 12%. EBITDA is expected to grow between 6% and 8%. They are targeting double-digit revenue and EBITDA CAGR in 2023-2026.
Deals and IPO
Saint-Gobain Considers Acquisition of GCP Applied Tech ($link)
Activist Investor Asks Glencore to Speed Up Thermal Coal Exit (link)
CVC drops $1.8 billion bid for Intertrust (link)
Other news
Virgil Abloh, Fashion Trailblazer for a New Generation, Has Died (link)
Why now? The key points behind the changes at Inditex, including the appointment of Marta Ortega as chair (link)
Luxury goods groups Hermes, Richemont push UMG and Vodafone out of blue-chip Euro STOXX 50 index (link)
Auto executives expect EVs will own half of U.S., China markets by 2030 - survey (link)
Trends in spirits 👍👎
Report: Real Madrid and Barcelona table alternative to LaLiga’s CVC investment deal (link)
It wasn’t a great week for non-profitable tech companies: