Plastivaloire: revised forecasts penalized

(CercleFinance.com) - On Friday, Plastivaloire suffered one of the steepest declines on the Paris market, following a sharp drop in its quarterly results and the lowering of its annual sales forecast.


At around 10.10 a.m., the share price of the manufacturer of plastic parts for consumer goods fell by nearly 6%, bringing its decline since the start of the year to 55%.

Citing a persistent slowdown in its various markets, the group now expects sales of only around 760 million euros for its current 2023-2024 financial year, compared with a previous forecast of around 770 million.

Its annual operating margin (Ebitda) is now expected to be around 6.5%.

Plastivaloire recorded sales of €188.6 million in its 3rd fiscal quarter, down 15%, including a 14.8% drop at constant exchange rates.

In a press release, the company explained that it was suffering from "less favorable" conditions in the automotive and industrial sectors, its two main markets.

"Plastivaloire had a complicated quarter, characterized by a double-digit decline in business across all the regions in which the Group operates", emphasized the analysts at TP ICAP Midcap, who maintained their "hold" recommendation on the share.

Penalized by lower production rates and delays in certain programs, sales in the automotive segment (parts and tooling) were down by 9.1%, while the industrial segment fell by 38.7%, again due to lower volumes temporarily requested by certain customers and delays in the start-up of new projects.

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