Somfy: share slumps with warning on demand
(CercleFinance.com) - On Thursday Somfy, the specialist in openings and closures for homes and buildings, warned that the current economic context could lead to a short-term contraction in demand.
In a morning statement, the group said that business over the summer was down relative to last year, in line with Q2.
Sales actually slipped just 0.1% over April-June, even though they were up 5.1% (+4.3% LFL) over H1.
The company points to a context of falling demand linked in particular to the consequences of the war in Ukraine and high inflation, which is weighing mainly on Europe, where Q2 sales fell by 4.2% LFL.
Profit from recurring operations was 198 million euros in H1, down 7.4% y-o-y.
Its underlying operating margin was 23.4%, below the record 26.6% in 2021, although well above the pre-Covid periods (around 18%).
In this deteriorated context, Somfy said it expects that household consumption choices will continue to lead to falling demand in the near term.
Following these comments, the share price dropped over 12% on the Paris Stock Exchange by mid-morning, marking one of the biggest falls on a Paris market that was just up (+0.1%).
Copyright (c) 2022 CercleFinance.com. All rights reserved.
In a morning statement, the group said that business over the summer was down relative to last year, in line with Q2.
Sales actually slipped just 0.1% over April-June, even though they were up 5.1% (+4.3% LFL) over H1.
The company points to a context of falling demand linked in particular to the consequences of the war in Ukraine and high inflation, which is weighing mainly on Europe, where Q2 sales fell by 4.2% LFL.
Profit from recurring operations was 198 million euros in H1, down 7.4% y-o-y.
Its underlying operating margin was 23.4%, below the record 26.6% in 2021, although well above the pre-Covid periods (around 18%).
In this deteriorated context, Somfy said it expects that household consumption choices will continue to lead to falling demand in the near term.
Following these comments, the share price dropped over 12% on the Paris Stock Exchange by mid-morning, marking one of the biggest falls on a Paris market that was just up (+0.1%).
Copyright (c) 2022 CercleFinance.com. All rights reserved.