(News Bulletin 247) – The leisure vehicle specialist has published increasing annual results, notably marked by an improvement in margins over the period. The company says it is observing sustained interest in its motorhomes at the start of the 2024-2025 financial year.

Trigano passes the publication test without difficulty. The leisure vehicle specialist delivered quality results for the 2023-2024 financial year on Monday evening after the market closed.

Already published in September, the group’s turnover for the entire 2023-2024 financial year, completed at the end of August, increased by 12.8% in published data with growth of 21.7%, still in data published by its main division, namely recreational vehicle sales.

Results “generally in line with expectations”

The market was therefore waiting for the results themselves, which came out “generally in line with expectations”, says Oddo BHF. Trigano’s current operating profit increased by 18.3% over one year to symbolically exceed 500 million euros, at a “record” level of 500.7 million euros. The group cites “the increase in sales of motorhomes , maintaining quality margins, controlling costs and improving productivity” as factors contributing to this performance.

This indicator comes out slightly above the expectations of Oddo BHF which expected 494.5 million euros in current operating profit.

The corresponding margin stands at 12.8%. This profitability, which is also “record”, exceeds the group’s own expectations. Trigano indicated in September that it was counting on a current operating margin rate at least equal to that of the 2022-2023 financial year, namely 12.2%. Net profit for its part jumped by 21.5% over one year, to reach 374.5 million euros.

Small downside, net cash is only 44.6 million euros, “which is the only disappointing element of this publication”, notes Oddo BHF.

“The difference with our forecasts (172.4 million euros), being linked to a greater deterioration than we estimated in the BFR,” specifies the research office. In this regard, Trigano indicates that its working capital requirement “was impacted in particular by a clear increase in stocks both at the integrated distribution level and in factories affected by disruptions in the supply chain linked to supply conditions. delivery of rolling bases”, linked to the passage of an environmental standard.

“This situation should normalize during the first half of 2025,” added the group.

“Reassuring words for 2025”

For the future, Trigano has, as usual, not provided any quantified prospects. The group reports “interest among its customers for motorhomes which remains sustained at the start of the financial year, as evidenced by the success of regional fairs and national exhibitions”.

“The clientele of first-time buyers remains structurally high, while this start of the season is marked by the return of the repeat clientele, thus reinforcing the current craze for traditional motorhomes. A future drop in interest rates could further consolidate the good direction of the market in the coming months,” continues the company.

On the other hand, the group warns of the desire of distributors to reduce their stocks. Oddo BHF thus understands that “overstocks within distribution are around one month of sales so that the impact on Trigano’s turnover during the first half of the year is estimated at around 4,000 motorhomes (i.e. approximately 200 million euros, or 5% of the 2024 consolidated turnover).

Trigano plans to adapt its production capacity for certain products (mainly vans) and the group expects the situation to normalize in spring 2025.

“We were already factoring in a drop in activity in 2025 of 7% to 3.659 billion euros, so we are not changing our expectations. In terms of operational profitability, after a record year in 2024 (operating margin of 12.8 %), the drop in margin in 2025 should be (in our opinion) relatively limited with potentially a policy of slightly greater price discounts to distributors and less absorption of fixed costs. “We are already integrating a drop in the operating margin to 11%, which seems a sufficiently prudent scenario”, continues Oddo BHF.

Ultimately, the group’s comments for the 2025 financial year are “reassuring”, appreciates Oddo BHF which, even by integrating a conservative scenario for turnover and margins, estimates that the valuation remains very low at 4.5 times the current operating profit expected for the end of August 2025 compared to a historical average of around 8.

“Implicitly, this level of multiple would imply a downward revision of current operating income for 2024-2025 of at least 40%, which seems too pessimistic,” continues Oddo BHF, which confirmed its advice to “outperform” and its price target of 158 euros.

The design office adds that the acquisition of Bio Habitat (Bénéteau’s leisure accommodation activity, Editor’s note) is expected by the end of the year, but that it is not yet integrated into its estimates.

On the Paris Stock Exchange, the copy made by Trigano is appreciated by the market. The stock rose 3.3% around 3:35 p.m., after gaining nearly 6% at the start of the session.