Sesa, Kepler Cheuvreux: results in line with guidance, expects erosion of profit

Giglio Group Caterina Matteoli has a 64 stake

(Finance) – The results of the fiscal year 2023/24 (ended in April) of Sesaa company listed on Euronext STAR Milan and active in technological innovation and IT and digital services for businesses, were “in line with guidance“, confirming the previously announced revenues of 3.2 billion euros and the margin forecasts with 106 million euros of adjusted net profit (103-108 million euros). This is stated Kepler Cheuvreux in a note after the accounts, awaiting the Virtual Investor Day in the afternoon.

Looking at the margins, theEBITDA adjusted was equal to 59 million euros with a margin of 7.3% in fourth quarterin line with last year and lower than expected, mainly due to the different mix.

It is noted that Sesa has also provided further information on the 2024/25 targets, predicting “still strong growth” both in revenues and EBITDA (up 5-10% and 5-12.5% ​​respectively) but an overall dilution of the adjusted net profit margin (+2.5-7.5%).

“However, net profit is expected to increase only by 2.5-7.5%, probably due to more D&A (€100 million of outflows between capex and investments are expected), a normalization at the fiscal level and no material improvement in financial charges,” analysts comment.

tlb-finance