Schloss Wachenheim AG Maintains Positive Outlook Despite Mixed Q3 Results

First Berlin Equity Research recently published a report on Schloss Wachenheim AG, reaffirming a "Buy" recommendation with a target price of €22.00. The analysis follows Schloss Wachenheim's Q3 23/24 results, which displayed a mixed financial performance with a sales increase of 5.6% to €87.1m, despite a 2.3% drop in volume to 43.0 million bottles. The company faced restructuring costs impacting earnings, yet maintains a cautious optimism for annual goals.

The report highlighted that Q3 EBIT was affected by €0.8m restructuring costs due to production transfer in France. Excluding these charges, the EBIT would stand at a loss of €1.4m versus a profit of €0.9m in the previous year. Despite the decline, the company's EBIT in East Central Europe showed improvement, attributed to acquisitions and local currency strength. Analysts believe that decreasing inflation may result in lower interest rates and boost consumer sentiment in upcoming quarters.

Management remains confident about achieving a roughly 5% increase in full-year sales and anticipates EBIT and net profit to hit the lower range of their respective forecasts. Schloss Wachenheim's strategic adjustments and market expectations continue to suggest a stable investment outlook moving forward.