Datwyler (AO) | Buy | Growing in healthcare and boosting efficiency in industrial business

研报英文原文证据摘录

Datwyler (AO) | Buy | Growing in healthcare and boosting efficiency in industrial business

Datwyler Buy | Target Price: CHF195.00

The Capsul’in bolt-on deal was highlighted as accretive. The asset-light business is a long-standing partner and has interesting

growth prospects. The deal is described as self-financed, likely keeping net debt/EBITDA unchanged and preserving cash. PMI is

progressing as planned.

Various positives - First, the deal secures Datwyler’s long-term position in food & beverage by mitigating the risk of losing

outsourced volumes once multi-year contracts expire or if Capsul’in were sold to another buyer.

Second, Capsul’in adds customer access beyond the Nespresso relationship: it serves roughly 100 customers, giving Datwyler

direct exposure to a diversified set of roasters.

Third, Capsul’in brings a valuable patent portfolio and strengthens Datwyler’s solution-engineering and product development in

aluminium capsules, complementing Datwyler’s materials and industrialisation strengths.

In the food and beverage business, Capsul'in provides a very dynamic element at a moment when the Nespresso business is still

somewhat sluggish.

Automotive dynamics in China remain solid, and the market seems still largely shielded from the crisis in the Middle East.

However, in European and North American markets, volumes are sluggish, and FX is weighing on reported results.

Datwyler sees some signs of recovery, albeit slow, in its Oil & Gas business. However, the business is rather small at 5% of sales.

The group also confirmed its capex target and an ROCE target, all allowing it to maintain the proven dividend policy and to reduce

its net debt ratio (net debt to EBITDA) to below 1.5x in the mid-term (all unchanged).

What’s new?