CDMOs, trading platforms and food delivery
FlatexDEGIRO, Just Eat Takeaway, ASMi, SFC Energy, Laboratorios Rovi, Interparfums, Gerresheimer, FACC and SES
FlatexDEGIRO (FTK) Strong revenue growth but profitability lags
FlatexDEGIRO’s Q4 results highlight the company’s ability to drive top-line growth, but also underscore the cost pressures that are weighing on profitability.
Revenue for the quarter came in well above expectations, fueled by strong growth in both commission and interest income. Trading activity was robust, with a notable increase in executed trades, while interest income benefited from higher cash balances under custody. However, despite these positives, the sharp rise in expenses—particularly in staffing—offset much of the revenue gain, leading to a weaker EBITDA performance.
The company has been expanding aggressively, and that has come with a significant increase in operating costs. Personnel expenses were a major driver of higher costs, rising more than 80% year-over-year. This, combined with other operational expenses, led to a decline in both EBITDA and net income, despite the strong revenue performance. The EBITDA margin also took a hit, reflecting the growing cost burden.
FlatexDEGIRO has provided relatively muted guidance for 2025, with revenue growth expected to be flat to slightly positive. However, the company has laid out ambitious targets for 2027, aiming for significant expansion in both revenue and profitability.
For now, cost management will be a key focus, as the company looks to balance growth with financial discipline.
Just Eat Takeaway.com (TKWY) Prosus makes a bold move with a +60% premium
Just Eat Takeaway.com is now officially in play, with Prosus making a strong cash offer that values the company at a significant premium. At €20.30 per share, the offer represents a 63% jump from TKWY’s previous closing price, making it an attractive deal for shareholders who have seen the stock struggle in recent years.
The premium is substantial, but it’s not necessarily a knockout bid—there’s still an open question as to whether another player, like DoorDash, might step in with a counteroffer.
This is not a hostile takeover; it’s a friendly deal, fully endorsed by TKWY’s management and board. CEO Jitse Groen and other major stakeholders have already committed to tendering their shares, showing strong internal support.
Beyond the financial aspects, Prosus has also agreed to a set of non-financial commitments for at least two years. These include maintaining TKWY’s strategic direction, keeping its existing headquarters, and protecting its workforce. That suggests Prosus isn’t just looking to absorb TKWY into its broader food delivery empire but wants to leverage its hybrid business model and regional dominance.
For Prosus, the acquisition fits into a larger global strategy. Already a powerhouse in Latin America, India, the Middle East, and Korea, Prosus has been looking for ways to expand its European presence. TKWY gives it a dominant player in Western Europe, which could be further strengthened if it manages to consolidate operations with Glovo’s assets in Eastern and Southern Europe.
The big question now is whether a rival will step in. DoorDash has a small footprint in Europe and might see this as its last big opportunity to grab a leading position. However, with TKWY’s management fully on board with the Prosus offer, any competing bid would have to be significantly higher and compelling enough to disrupt an already well-structured deal.
ASM International (ASMi) strong growth despite weaker china orders
ASMi delivered another solid quarter, beating expectations on revenue and profitability while maintaining its 2025 guidance. The company saw particularly strong demand for its advanced logic and foundry technologies, helping push Q4 revenue to the high end of its forecast range. However, order intake came in lower than expected, largely due to softening demand from China. Despite this, ASMi remains confident in its long-term positioning, particularly in its next-generation Gate-All-Around (GAA) transistor technology.
The dip in orders was partly expected, as some demand was pulled forward into Q3. Orders for GAA technology surged, but this was counterbalanced by weaker-than-anticipated demand in China. That said, ASMi expects a strong start to 2025, with Q1 revenue guidance coming in higher than consensus estimates. The company is betting big on the future of semiconductor manufacturing, particularly in AI-driven applications and high-bandwidth memory for data centers.
While challenges remain—particularly in power and analog markets, which continue to show weakness—ASMi’s overall trajectory looks strong. The company’s reaffirmation of its full-year guidance is a positive signal, showing confidence in its ability to navigate short-term headwinds.
The long-term trends in semiconductor manufacturing, particularly in AI and next-generation computing, continue to work in ASMi’s favor, keeping it well-positioned for sustained growth.
SFC Energy (F3C) A strong close to 2024
SFC Energy ended 2024 on a high note, exceeding both market expectations and its own guidance. The company delivered strong revenue growth across both its clean energy and clean power management divisions, with Q4 profitability significantly outperforming analyst forecasts.
This comes as a pleasant surprise, especially after earlier warnings that margins in the final quarter would be weaker. Instead, the company managed to expand margins while maintaining strong sales growth, reinforcing its position as a leader in clean energy solutions.
The better-than-expected results were driven by a combination of higher gross margins and disciplined cost control. Management highlighted that operating costs remained stable even as sales grew, leading to a notable boost in profitability. The company’s order backlog also climbed significantly, reflecting continued strong demand for its products. This backlog is now up nearly 30% year-over-year, providing a solid foundation for growth heading into 2025.
For the year ahead, SFC has issued a somewhat conservative outlook, forecasting revenue growth of 11-25%. While slightly below some market expectations, the company has a history of beating its own forecasts, which suggests there could be upside potential. With demand for clean energy solutions accelerating and SFC’s financials continuing to strengthen, the company remains on a promising trajectory.
Laboratorios Rovi (ROVI) Good Q4 earnings, but outlook remains cautious
Momentum slowed considerably for Rovi, particularly in its contract development and manufacturing organization (CDMO) business, which saw a significant revenue decline. However, despite these challenges, Q4 results exceeded the post-warning estimates, showing that the business is holding up better than feared. Becat, one of its key products, delivered a strong rebound, while newer treatments like Okedi showed promising growth.
Profitability took a hit due to the weak CDMO performance, compounded by one-off costs related to strategic evaluations and facility closures. The gross margin held up relatively well, but EBITDA saw a sharp decline year-over-year. Net income was also down, though the company managed to reduce net debt, reflecting solid cash management despite the earnings pressure.
For 2025, management is guiding for a mid-single-digit sales decline. However, potential upside exists if vaccination campaigns change or new CDMO clients come on board.
While the near-term outlook remains muted, the company’s financial stability and long-term growth potential suggest it could still see a rebound in the years ahead.
Interparfums (ITP) Steady performance with raised 2025 outlook
Interparfums wrapped up 2024 with a strong and predictable performance, delivering results at the upper end of expectations. The company’s operating profit rose by 11%, with net profit following suit, helped by a more normalized tax rate. Free cash flow generation was solid, leaving Interparfums with a net cash position at year-end—a notable turnaround from the net debt it held just six months prior. Shareholders will see a dividend increase of 10%, along with another round of free shares, continuing the company’s long-standing policy of rewarding investors.
For 2025, the company raised its revenue guidance slightly, now targeting sales between €930 million and €935 million, up from the previous €910 million-€930 million range. While the company has not given specific guidance on profit margins yet, management remains committed to maintaining high profitability.
Operationally, the business continues to benefit from stable gross margins and disciplined spending on advertising, which was well-controlled in the second half of the year. The improvement in operating margin, despite ongoing investments in marketing, underscores Interparfums’ ability to manage costs effectively.
The key focus areas for 2025 will be sustaining operating margin expansion, integrating newly acquired brands, and renewing important licenses. The company has steadily improved its profitability over the years, with operating margins rising from 14% in 2015 to 20% in 2024.
With brands like Lacoste and Moncler in its portfolio, and the Coach fragrance license set for renewal in 2026, the company is positioning itself for continued growth. While no major surprises emerged from this release, Interparfums remains a steady performer in the luxury fragrance market, combining consistency with gradual expansion.
Gerresheimer (GXI) Soft 2025 guidance weighs on outlook
Gerresheimer’s fourth quarter showed a modest revenue increase, but the results didn’t quite match expectations.
The company faced ongoing challenges with destocking, particularly in its Plastics & Devices segment, which grew below forecasts. On the other hand, the Primary Packaging Glass business performed better than expected, helping offset some of the weakness elsewhere. Advanced Technologies, a smaller part of the business, remained stable. Despite the mixed top-line performance, profitability held up relatively well, with adjusted EBITDA showing moderate growth.
The bigger concern comes from the company’s outlook for 2025. Gerresheimer is now guiding for organic revenue growth of just 3% to 5%, falling short of previous estimates.
This cautious forecast reflects a more conservative view of market demand and potential headwinds in the year ahead. While adjusted EPS is still expected to grow at a high-single-digit rate, the medium-term growth expectations have been lowered.
Previously, Gerresheimer had expected organic sales growth of over 10%, but this has now been revised down to a more modest 8% to 10%. While the company maintains its long-term EBITDA margin target of 23% to 25%, the scaled-back sales forecast could raise concerns about how quickly those targets can be reached.
One factor that could provide some support for the stock is ongoing takeover speculation. Gerresheimer has confirmed discussions with private equity investors who have expressed interest in a potential public buyout. While these talks remain at an early stage, they could help cushion any downside pressure on the share price.
Overall, the weaker 2025 guidance will likely weigh on sentiment in the near term, but takeover discussions may keep the stock from seeing too sharp of a decline.
FACC (FACC) Strong sales growth overshadowed by cost pressures
FACC delivered another solid quarter in terms of revenue, reflecting continued strong demand from aircraft manufacturers ramping up production. Sales came in well ahead of expectations, with full-year revenue growth reaching over 20%, slightly exceeding the company’s own guidance.
However, while top-line momentum remains robust, the company’s profitability continues to struggle. Operating profit fell short of expectations, with an EBIT margin of just 2.7% in the fourth quarter and 3.2% for the full year—both below the company’s already conservative guidance.
The main issue remains the rising cost environment. FACC has been facing increasing site, personnel, and energy costs, as well as regulatory expenses. The company’s workforce expanded significantly, adding nearly 400 employees over the year, which adds further cost pressure.
While management is guiding for a continued sales increase of 5% to 15% in 2025—suggesting revenue growth could remain well above industry averages—the outlook for profitability remains vague. The company has simply stated it expects an “improvement” over last year, but without specifics, it remains unclear how much progress can realistically be achieved.
One potential bright spot is the Cabin Interiors segment, which could see a boost from the company’s new low-cost production site in Croatia. However, questions remain about whether this will be enough to offset broader cost pressures.
Investors will be looking for more clarity when FACC releases its final 2024 results in late March and holds its Capital Markets Day in early April. For now, while sales momentum remains strong, the continued drag on profitability limits any significant upside for the stock in the near term.
SES (SES) Cautious outlook as competition intensifies
SES presented its 2025 outlook, aiming for stability in both revenue and EBITDA, supported by new contracts in its medium earth orbit (MEO) segment. The company expects to maintain revenues at around €2 billion and EBITDA at just over €1 billion, while also reducing capital expenditure.
The guidance aligns closely with consensus estimates, which suggests the market had already anticipated this trajectory. The key factor supporting SES’s stability is the growing contribution from government and connectivity contracts in MEO, particularly in aviation and maritime segments. However, this must counterbalance the continued decline in its video segment, which remains under pressure.
The positive side of the story is that SES is seeing renewed momentum in mobility connectivity, with revenue from aviation and maritime customers returning to growth. New contracts with major airlines and cruise operators, such as Turkish Airlines and Virgin Voyages, have provided a boost. Additionally, cost-saving efforts helped the company deliver better-than-expected Q4 results, with EBITDA coming in significantly ahead of expectations.
SES is also moving forward with its planned acquisition of Intelsat, which it believes will strengthen its position in the satellite communications space. However, the market remains skeptical about the long-term benefits of this deal, given the competitive pressures from low earth orbit (LEO) satellite operators.
On the downside, SES is still facing significant headwinds. The video segment continues to decline, and management expects this trend to accelerate in 2025. While the company has lowered its capital expenditure for the year, it is still slightly higher than what analysts had hoped for, particularly as SES continues to roll out its next-generation O3b mPOWER satellites.
Furthermore, the integration of Intelsat raises concerns, as recent financial performance from Intelsat has been underwhelming. SES remains optimistic about achieving €600 million in free cash flow by 2027-2028, but given the investment commitments tied to the European Union’s IRIS satellite program, this target appears ambitious.
With competitive pressure from LEO players increasing, SES may need to reconsider its strategic direction.
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The free shares at Interparfums are a joke. They cutting the pizza in more slices and give everybody an additional slice. Then they tell them it is a dividend.