Alfa Laval: share at first falls as no margin guidance

(CercleFinance.com) - On Thursday, Swedish engineering group Alfa Laval set itself the target of achieving annual sales of 100bn SEK (around E8.
6bn) by 2030, but the lack of profitability forecasts seemed to at first disappoint the market.

At an investor day held at its industrial site in San Bonifacio (Italy), the specialist in heat exchange and fluid separation and transfer explained that it expected to benefit from growing demand for businesses linked to the energy transition.

With sales of 63.6bn SEK last year, the Scandinavian group expects to achieve average annual sales growth of 6.6%, RBC estimates.

On the environmental front, Alfa Laval has stated that it plans to achieve carbon neutrality on both its 'scope 1' and 'scope 2' emissions by 2027, three years ahead of its original timetable.

While welcoming ambitious climate targets, RBC analysts were disappointed by the absence of profit margin forecasts.

We think the market was expecting the group to set a new margin target of over 17%, the Canadian broker explains.

The company reported a Q3 adjusted EBIT margin of 17.3%, up 0.6% from the same period last year (16.7%).


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