First Berlin Equity Research Reiterates Buy on Schloss Wachenheim AG

First Berlin Equity Research has released an update on Schloss Wachenheim AG, maintaining a Buy recommendation and a target price of €22. Despite inflationary pressures impacting consumer spending and necessitating price increases, the company reported a 3.7% rise in sales to €441.5 million for the financial year ending 30 June 2024.

EBIT grew by 3.0% to €28.2 million. While sales volume fell by 5.2% in 2023/24, management is optimistic about a potential stabilization in volumes as inflation eases and interest rates fall. EBIT for 2024/25 is projected between €31 million and €33 million, driven primarily by improvements in the France segment.

The dividend remains unchanged at €0.60. Adjustments were made to align future EBIT forecasts with these projections, while lower yields on German 10-year government bonds balanced the overall valuation impact. Analyst Simon Scholes supports the continuation of the Buy rating with an unchanged price target.