(News Bulletin 247) – The leisure vehicle specialist published current operating profit down year on year in the first half but better than expected. The reduction in logistical tensions and a favorable basis for comparison should enable it to generate strong growth in the second half of its financial year.

The end of the tunnel is getting closer and closer for Trigano. The specialist in leisure vehicles (motorhomes, caravans) has been driven in recent years by strong demand due to favorable demographic trends but also to increased interest in its products after the outbreak of the pandemic, the motorhome being perceived as a “sanitary bubble”.

The company’s order books have therefore continued to fill. But it is on the supply side that the problem has lately been, with logistical tensions over chassis deliveries which have weighed on the group’s growth.

What is felt on the activity of the group in the first half. Over the first six months of its staggered 2022-2023 financial year, which will end at the end of August, Trigano’s revenues fell by 0.2% like-for-like to 1.6 billion euros.

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Trailer destocking

Its largest division, leisure vehicles, recorded growth excluding changes in exchange rates and scope of 2.1%, to 1.53 billion euros. In the second quarter alone, this division experienced a marked return to growth (+11.5%), thanks to the improvement in rolling base deliveries, marking the beginning of the reduction in logistical tensions. In the first quarter, revenue fell 6.5% like-for-like.

Leisure equipment, Trigano’s second division, saw its revenues contract by 29% over the first half of the year, weighed down by significant destocking in the trailers division.

Trigano’s current operating income (COI) stood at 173.4 million euros against 179.3 million euros a year earlier, while the corresponding margin fell from 12% to 10.8%.

This 3% decline in “ROC” over one year is clearly below expectations. According to a note from TP ICAP Midcap, published on Wednesday, the consensus was expecting a drop of around 10%.

Strong rebound in growth expected in the second half

The leisure vehicles division also limited breakage. Current operating income increased by 4% to 173.4 million euros and the corresponding margin fell to 11.4% compared to 12.1% in the first half of 2021-2022. “We consider this a good result given that it includes the full consolidation of the distribution activities acquired last year but which were only consolidated in the second half. These activities generate margins significantly lower than those of the main activity” of production of motorhomes, underlines the bank Berenberg.

Net profit also rose from 141.3 million euros to 121.7 million euros.

Regarding its prospects, the group was optimistic. “Given the high level of its order books and the marked improvement in receipts of chassis for motorhomes observed for several weeks, Trigano should record a good increase in its sales and its profitability in the second half”, declares the Company.

The rebound should be all the more significant as Trigano will benefit from a lenient comparison base in the second half. Berenberg is thus counting on organic growth for the second half of 21% over one year.

On the Paris Stock Exchange, the Trigano share jumped 10.2% to 127.5 euros this Thursday around 10:20 a.m., signing the largest increase in the SBF 120. On Wednesday, investors had seemed nervous before the publication of the group, which occurred on Wednesday evening after the closing, the title having then fallen by 5.3%.

For Berenberg, the action is still trading at multiples that are too low in view of its balance sheet – the group posted a positive cash position of 138 million euros at the end of February – and its “favorable dynamics in terms of demand/ offer” and this “even considering the risk of a weaker environment in the medium term”. The German bank reiterated its buying advice and its target price of 175 euros.

Remember that the company entered into negotiations last week with Beneteau to buy back its housing activity, which includes the manufacture of mobile homes found in campsites.