Analysis H1 2009 results Passat Code Isin : FR0000038465
Symbol: PSAT
High / 6 month: 2.10 / 8.68 euro
Numbers of shares outstanding: 4,200,000
Market: Segment C
Shareholding reference (source Bloomberg)
Broszio Kirsten: 20%
Broszio Borries: 10%
Jousse Morillon Investissement: 9.74%
Broszio Robin: 5%
Broszio Kirstin : 5%
Tocqueville Finance: 4.94% Management
Bestinver SGI: 1.92%
Nestor Investment: 0.80%
Passat: H1 2009 results up sharply!
Presentation
Passat is a company that markets innovative products to the public by selling image-guided (park video 10000 screens ...). Founded in 1987, the company is now one of Europe's leading sector. Passat products are sold primarily to supermarkets and specialty generalist (BHV, Castorama, Leroy Merlin ...). Passat is well referenced with approximately 130 power of large retailers in Europe and North America. The remaining sales are through mail order (Redoute, 3 Suisses ...) and wholesalers. The Passat offers
revolves around a portfolio of approximately 200 active part numbers. They are divided into six main categories:
- Kitchen: Durandal and branded Facil Home (cooking utensils and cooking with heat-resistant glove)
- Household (comfort and home maintenance): Green Power brand (maintenance items including the log of soot) Piping and Green mark (housewares)
- Beauty (hygiene products, care, comfort and sport): mark Actiforme (cell Pillow, Inflatable Sledge) Dental Revolution (Electric toothbrush ...) Spirit Beauty (Slimming Capri ...)
- Garden: Garden brand Passat (with the famous garden claw ...) Plein Air (barbecue utensils and seeds / flower)
- DIY: Tools registered Passat (paint gun, laser level ...), Stone Guard (waterproofing ...) Kapro (R multifunction)
- Hobbies / Toys: games under the brand Jorelle Toys (wooden toys), and Blendy Pens Spraysa (coloring, markers ...), brand Passat (kite, relax cushion, water guns ...)
The distribution of turnover in H1 2009 is performed as follows: France (80.45%), USA (9.25%) and Southern Europe (10.3%).
Latest news
Passat published on September 10 last interim results for the first half 2009. These show a net profit of 2.64 million. The turnover of the period has been communicated to the market on 7/30/2009. Passat activity recorded 23.12 million euros.
Analysis
level of net income:
Passat has done on the first half 2009 net profit of 2.64 million. The net result has been multiplied by 10.5 in comparison to H1 2008, which stood at 0.25 million euros. It represents 11.4% of sales. Operating income, which allows truly measure the intrinsic performance of the company is also final, soaring to 3.81 million against 0.40 million euros in H1 2008.
This is good first half result, activity increased significantly in H1, a positive contribution to the result of all geographical areas and especially the actions (saving external loads, reducing advertising costs ...) by management for over a year back in running order Passat face a depressed economic situation.
Point on the French market: With
good control of operating expenses that have accompanied the increase in sales, net income shows 2.082 million against 0.423 million euros a year ago.
In this area, to enter the retail, transportation costs, despite the increase in activity, are virtually identical in H1 2008, thanks to falling oil prices. Staff costs have not evolved. Cons by two factors continued to weigh on profitability. Depreciation remaining an important job at 0.54 million euros, partly because of fleet renewal corners video. They are, however, because back corners and displays old (not renewed) which no longer correspond to the definition of an asset are from the close of fiscal 2008 expensed. In terms of personnel expenses, we can note an increase thereof due to the resumption in 2008 of provision for allotment of shares to group leaders. Excluding this adjustment, the payroll has remained almost unchanged.
Point Iberian market:
The measures taken during the past two years to improve the performance of Portuguese and English markets are beginning to bear fruit. Thus, after a profound reorganization of subsidiaries which has resulted in improved sales, reduced external loads and higher gross margins, the Iberian Peninsula brings his bill in half-year results of the group and that in a difficult economic environment. Overall, the markets of southern Europe contribute to net profit for H1 2009 to 0.363 million euros against a loss in profit for H1 2008. Respectively, the contribution of each country and done, Spain 0.368 million euros and Portugal, which is close to equilibrium with a negative-5keuros.
Update on the American market:
The first half is for the U.S. subsidiaries insignificant. Indeed, the volume of sales for the period is relatively small due to the seasonality of the two products marketed in the area. In fact, the S1 collects largely fixed costs, charges obviously linearly spread over the entire year (this is the amortization of patents of the log ramones acquired in 2007 and depreciated over 4 years and certain technical characteristics of heat resistant glove, acquired in 2008 for 0.2 million and amortized over 2 years). Sales for the period is reduced, the result of the half came to 0.206 million euros against a loss of 0.21 million euros a year earlier. This figure is not representative of the activity of this area. Over the period the dollar impact because of the low activity had little effect on the outcome of the semester. In addition, during weak dollar, and because of the volumes, the group winner is economically, the impacts currency is structurally balanced group. France achieved the vast majority of its supplies in dollars, while the U.S. subsidiary, CSL buys in euros.
level of turnover:
The group displays on the Passat first half of 2009, a turnover of 23.12 million euros, up by 13.9% against 20.30 million euros in H1 2008. The first quarter was particularly buoyant with a growth of 21.1% to 11.57 million. The more moderate T2 nevertheless saw an increase of its activity by 7.6% to 11.55 million euros. Overall, group sales were up across all geographies.
In France, in a context of sluggish consumption, the performance of the product range have been worn by a proper deployment of the sales force and the success of some new products that allowed Passat to make on its first market (80.45% of the activity of the group) turnover in H1 2009 amounted to 18.6 million euros against 16.75 million euros a year ago an increase of 11.1% .
In southern Europe, the macroeconomic environment very disturbed, did not diminish the good momentum in sales. The measures taken to improve the performance of the Iberian Peninsula began to bear fruit. Thus, the concentration of efforts on higher margin products together with improved productivity trade was beneficial for the activity of the semester. Revenues came in at 2.38 million euros against 1.58 million euros in H1 2008 representing an increase of 51.4%. The Southern Europe represents 10.3% of consolidated sales.
United States, the first half is special. Indeed, the marketing season of the two products (log Ramones and heat-resistant glove) start in October and ends in January. Thus, sales of the period only 15% of those of the year. In fact, the volume of activity is insignificant and unrepresentative. On S1, Passat has done on this area of 2.137 million euros in turnover, up 8.2% against 1.98 million in H1 2008. The U.S. accounted for 9.25% of Group sales over the first 6 months of the year 2009.
Outlook
Passat forecasts still remain relatively unclear. The group's management reiterates its caution over a possible continuation of the strong momentum of H1 on the rest of 2009. Thus, the activities of the Iberian Peninsula will confirm the effects of restructuring. The United States, currently suffering the effects of a crisis is difficult to assess for the group. However, the 2009 U.S. campaign does not now warning sign. In France, the great increase in sales will be confirmed on the second part of the year.
Beyond these points are still present uncertainties in the macroeconomic environment on consumer spending difficult to predict in a context of crisis combined with a high unemployment rate.
Fundamental
The stock market value reached Passat to 18/09/09, 34.02 million. This funding begins to conform with the basic quality of the company. Here are the key points of the financial structure Passat:
balance sheet structure :
-Equity is 25.809 million euros to 30/06/09 is 6.14 euros per share.
-financial debt stood at 0.227 million euros, representing a gearing of 0.87%.
-Closing Cash at 30/06/09 consists of 10.44 million euros of investment securities and 0.48 million euros in cash. Either a cash overall 10.92 million euros, which represents 2.6 euros per share.
Financial Ratios:
-On the basis of the last, the PER is 6.44 in the annual estimate.
-The operating margin was 15.87% in H1 2009 against 4.69% in H1 2008. The EPS is
- amounts to 0.63 euros per share.
Conclusion The first half of 2009 benefited from strong momentum across all geographical areas of the group and that in an economic environment unfavorable. This is the result of actions taken over the last twelve months. Now, Passat will confirm its second half the good results obtained in the S1. The group can draw on an optimized trade organization, the quality of its product offering and especially on a financial structure very good. The stock market value of the group begins today take into account the many qualities of value. In the absence of prospects figures but taking into account the positive trend initiated in the S1, a target of 9 euros seems achievable in the medium term. In the longer term, we can consider the 12 euros if the dynamics on the S1 is confirmed over the full year 2009.
FB
Next analysis of the title at the 2009 annual results
