(News Bulletin 247) – The industrial gas specialist delivered activity that was slightly lower than expectations in the third quarter. The CAC 40 group, however, indicates that it has continued to improve its margins at the same pace as in the first half.

Air Liquide remains a must for small carriers. Remember that around 34% of the capital of the industrial gas specialist is held by individual shareholders, which brings together around 800,000 small investors.

Portfolio fund value par excellence, Air Liquide published activity roughly in line with expectations in the third quarter, this Wednesday.

Over the period from July to the end of September, the group generated revenues of 6.76 billion euros, a little less than the Vara Research consensus, which stood at 6.797 billion euros. Revenues fell by 0.7% in published data, penalized in particular by unfavorable exchange rate effects of 3.1 percentage points. Excluding the impact of currencies, changes in scope and energy prices, Air Liquide recorded like-for-like growth of 3.3%.

>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio

Good momentum in health

The “gas and services” segment, which accounts for the majority of its revenues (95% of the total), saw its turnover increase by 3.6% on a comparable basis, right in line with the consensus (3.6%). .

By segment, “large industry”, that is to say the company’s most energy-intensive customers (metallurgy, chemicals, refining), posted an increase in revenue of 2.8% on a comparable basis, penalized by the sale of a cogeneration unit (which produces both electricity and heat) at the start of the year in Europe as well as customer outages for maintenance. “Industrial merchants”, that is to say smaller industrial customers, recorded an increase of 1.7%, with decreasing gas volumes.

The “electronics” (materials and gases for the semiconductor industry or even for flat screens) and “health” segments are more dynamic, with respective growth of 5.9% and 9.2%. Health particularly benefited from “the dynamic development of home health and the increase in volumes and prices of medical gases in an inflationary environment”, explains the company.

Beyond its activity strictly speaking, Air Liquide has given some details on its profitability. The manufacturer indicates that it has improved its operating margin by 1 percentage point since the start of the year, at the same rate as in the first half. What Stifel describes as “good news”.

The company explains having achieved record efficiency gains of 353 million euros over nine months, up 10% year-on-year. “We also continued the dynamic management of our portfolio of activities, while adjusting our Industrial Merchant prices thanks to our ability to create value,” explains the group. Air Liquide also launched a simplification plan in July which will notably reduce the number of hierarchical levels in its organization.

An unjustified discount against Linde?

Quoted in a press release, the group’s general manager, François Jackow, confirmed the company’s objectives for 2024, namely to increase its operating margin and grow its recurring net profit at constant exchange rates.

On the Paris Stock Exchange, this publication was received lukewarmly by the market. The stock fell by 0.5% around 3:40 p.m., approximately the same decline as the CAC 40.

“Air Liquide continues to move forward on its roadmap,” nevertheless appreciates Oddo BHF, which reiterates its advice of “outperformance” on the stock. The broker cites the discount displayed by the French group compared to its German-American competitor Linde, this discount standing at around 25%. This while the company’s operating profit is expected to grow at an average annual rate of 8.2% over the period 2023-2026 compared to 6.5% for Linde, notes Oddo BHF.