Clothes, gambling and metal jackets
Inditex, Lanson-BCC, Prodways, Rubis, Redeia, Cirsa Enterprises, Afyren, Séché Environnement, Serge Ferrari, Chargeurs, Jacquet Metals
At Lux Opes, we break down the latest company news into quick takes that get straight to the point—what happened, why it matters, and what to watch next.
We publish 2-4 times per week, depending on the news flow.
Inditex (ITX Spain): momentum accelerates into the second half
Inditex’s second-quarter results were broadly steady with market expectations, but the real story sits in the early signs of reacceleration that emerged in August. Reported sales of just over €10bn were slightly shy of consensus, mainly due to currency headwinds, but at constant exchange rates the top line grew 6%, keeping pace with forecasts. Gross margin was stable at 56.4%, while operating profit came in at €1.9bn, essentially in line with the market and maintaining a healthy 19% margin.
The consistency in profitability is worth underlining, as it shows that Inditex continues to absorb forex and cost pressures without allowing its core economics to slip. What really caught investors’ attention, though, was the 9% constant-currency growth recorded in the first weeks of August and September, a sharp step up from Q2’s 6% pace and comfortably ahead of market expectations for the third quarter.
This acceleration matters because it reinforces Inditex’s ability to keep outperforming the sector despite a soft consumer backdrop in parts of Europe and heightened competition globally. While H&M and other mid-market players are struggling to keep growth ticking over, Inditex continues to deliver steady volume and pricing traction, helped by its tightly managed supply chain and a still underappreciated edge in speed-to-market.
The flat gross margin in Q2, while unexciting on the surface, is another small victory given the rising promotional intensity seen across peers. Meanwhile, EBIT margins holding around 19% put the group comfortably ahead of global apparel benchmarks, a position that makes its relative valuation premium look far less stretched than headline multiples might suggest.
Looking out, Inditex’s three-year growth profile still looks intact: management is signaling mid-single-digit annual sales growth, and given its scale advantages and cost discipline, it’s not hard to believe. Currency headwinds remain a swing factor, but underlying demand trends are supportive and recent trading suggests that momentum is strengthening into the back half of the year.
Importantly, Inditex continues to extend its lead over H&M, with forecasts for 6% growth against just 2% at its Nordic rival, highlighting structural divergence in operating models and brand resonance. With execution staying sharp, margins intact, and near-term sales momentum picking up, the investment case remains one of steady compounding rather than big surprises — but that’s exactly what gives confidence in a volatile sector.
Lanson-BCC (ALLAN France): champagne volumes under pressure despite higher sales
Lanson’s first-half results reflected the mixed dynamics playing out across the Champagne market. Reported revenue rose modestly thanks to interprofessional sales, which gave the top line a one-off boost, while the underlying picture was softer as volumes fell in line with the overall sector. Domestic sales in France were down, exports only inched higher, and the US market in particular was a drag, with volumes halving under the weight of tariffs and currency moves. The gross margin contracted on higher raw material costs and a less favorable mix, while operating profit dipped accordingly. Net income slid further under the pressure of higher financing costs, though the balance sheet remains stable with leverage gradually improving.
The key challenge now lies in visibility for the remainder of the year. Management noted that customer stocks remain low and order books look encouraging for September, but beyond that the backdrop is clouded by macro uncertainty and geopolitical risks.
Competition is intensifying outside the US, where price declines are already showing up in industry data, suggesting the pricing environment may turn less supportive in the second half. At the same time, grape prices — which are set only after harvest — are expected to ease, offering some relief on costs and setting up better profitability in future years. For now, the group is holding its ground in a market that remains broadly stable.
Overall, Lanson is navigating a period of adjustment where higher selling prices have cushioned the impact of weaker volumes, but with limited visibility into year-end, investors are left waiting for clearer signals. The company’s fundamentals remain intact, with controlled expenses and steady financial discipline, but the near-term headwinds are unlikely to disappear quickly.
Prodways Group (ALPWG France): steady margins but still no catalyst for growth
Prodways’ half-year update underlined its ability to tighten operations, though the lack of momentum on disposals leaves investors in a holding pattern.
The group’s sales came in lower year-on-year, reflecting weakness in its Products division, but EBITDA improved modestly as cost savings and a more disciplined focus helped lift margins. The Systems business, now more narrowly focused on industrial clients, showed progress with profitability back into the mid-teens, while Products remained challenged by declines in digital manufacturing and audiology. Even so, EBIT and net income fell short due to restructuring charges, and the bottom line stayed in negative territory. Cash flow was slightly positive, and net debt remains well under control, supported by a decent liquidity cushion.
For the rest of the year, management has kept its guidance unchanged, targeting a modest recovery in revenue and an improvement in EBITDA margins. The strategic focus is clear: streamline operations, keep profitability moving higher, and maintain flexibility with the balance sheet.
However, the elephant in the room remains the potential disposals in the Systems division — particularly printers and 3D materials, which are the group’s most profitable activities. The absence of news on that front has left some speculative interest fizzling out, with the shares drifting lower after an earlier run-up. Investors will be watching closely for any developments, as a sale could unlock value and return cash directly to shareholders.
Until then, Prodways faces the reality of a difficult 3D printing market, where growth catalysts are lacking and top-line acceleration looks unlikely before 2026. The business is proving that it can adapt and improve margins, but without stronger demand or clarity on asset disposals, the investment case remains muted.
Rubis (RUI France): resilient model shines through with profit surprise
Rubis delivered a solid first-half performance that once again showcased the defensive nature of its business. Net income rose sharply, helped by lower interest expenses and more stable currencies, comfortably beating expectations. At the operating level, EBITDA was steady, with Retail & Marketing providing reliable growth, particularly in Europe, and Support & Services holding flat. The renewable power segment was softer due to project ramp-ups, though the longer-term trajectory there remains intact. Importantly, holding costs continued to trend lower, adding to the overall resilience. The balance sheet stayed healthy, with leverage unchanged, although free cash flow dipped as the group stepped up investment in renewables capacity.
Management reiterated its full-year guidance, noting that the strong first-half showing should be enough to offset the negative impact of the dollar in the second half. Price formula adjustments in Kenya, which only kicked in from March and July, will also support earnings in the coming quarters. While free cash flow was weaker, the investment in solar projects positions the group for growth, and the overall business remains comfortably cash generative. The outlook therefore remains one of steady delivery, without exposure to tariff risks or over-leverage that could unsettle peers.
The key takeaway is that Rubis continues to live up to its reputation as a reliable compounder in a volatile environment. With a disciplined dividend policy, strong financial footing, and measured expansion in renewables, the company offers a balance of defensiveness and growth optionality. The latest results reinforce why Rubis remains one of the more dependable names in the midcap energy space.
Redeia (RED Spain): regulatory clarity sets the stage for the next cycle
Redeia has given investors a clearer view of the next regulatory period in Spain, and while the framework doesn’t change the investment case dramatically, it does provide the kind of visibility the market had been waiting for.
The preliminary remuneration methodology for 2026–2031 largely confirms what most observers expected: a modest step-up in the allowed rate of return on the regulated asset base, paired with tighter operating cost standards that effectively cancel out some of the upside.
The final approval process will run through the Ministry and CNMC, but with the consultation phase now behind us, major revisions seem unlikely. Redeia has said it will present its strategic plan later this year once both the regulation and Spain’s national electricity plan are locked in, which should give much more detail on the €9bn investment programme planned through 2030.
The details of the new framework show the usual regulatory balance between incentives and constraints. The rate of return has been lifted to around 6.5%, a clear improvement from the previous period, while capex standards were finally updated for the first time since 2013. Unit costs were adjusted upwards, though still lagging cumulative inflation, meaning Redeia will need to keep squeezing efficiencies.
The more aggressive revision was on operating cost standards, cut by around 6%–13% once efficiency factors are included, effectively shaving €60m from annual revenues. That largely neutralises the benefit of the higher returns, underscoring how regulators in Spain continue to take a tough line on cost discipline. Importantly, there is now formal recognition of work-in-progress investment for large, complex projects. This gives Redeia earlier remuneration for financing costs on big-ticket projects like island interconnections and cross-border links, which should ease pressure on the balance sheet during the peak investment years.
Taken together, this framework doesn’t alter Redeia’s role as a predictable, utility-like compounder. The slight positive impact on earnings estimates reflects the balance of higher returns and tighter costs, but it’s really the stability that matters most. Investors now have a clearer line of sight on revenues and capex recovery through the end of the decade, at a time when Spain is ramping up its energy transition and grid reinforcement needs.
All in, Redeia remains what it has long been: a low-risk infrastructure play where execution on the €9bn plan and discipline on costs will matter more than regulatory surprises.
Cirsa Enterprises (CIRSA Spain): digital momentum keeps growth story intact
Cirsa’s second-quarter results confirmed the solid operational momentum that has been building since the start of the year. Revenues grew double digits again, extending the trend from Q1 and comfortably beating the short-term guidance the company had set for itself. The boost came not only from acquisitions such as Apuesta Total but also from strong contributions across its land-based and online businesses.
EBITDA followed the same trajectory, rising at a healthy clip, though margins dipped slightly due to geographic mix effects. Net profit looked weaker on the headline due to a higher tax rate, but stripping out accounting effects, underlying earnings continued to advance. The cash flow profile was especially strong, with operating free cash flow before M&A jumping more than 60%, a reassuring signal that growth is translating into hard cash.
Looking across the business lines, Cirsa continues to show why its mix is appealing. Casinos held steady despite FX headwinds, proving the resilience of that business with margins around 40%. The Spanish slots operation managed to expand profitability meaningfully, benefiting from portfolio rationalisation and new products, while the Italian slots segment maintained its steady, if lower-margin, performance.
The standout remains digital, where sales soared more than 60% and margins widened as scale benefits kicked in. This online segment is becoming an increasingly important driver of group performance, giving Cirsa exposure to faster growth and better scalability alongside its traditional footprint.
Management also highlighted financial cost savings already secured post-IPO, with further opportunities as expensive debt matures in late 2025 and 2026. Those refinancing gains could provide a meaningful tailwind to earnings over the next couple of years.
The full-year guidance was reiterated. The company’s formula — balancing resilient, cash-generative land-based operations with a rapidly expanding digital arm — is delivering both stability and growth. With cash generation strong enough to cover investment and dividends, Cirsa is positioning itself as a self-funded growth story, a rarity in its sector.
The structural trajectory looks clear: steady high-single-digit revenue growth, double-digit earnings expansion, and rising financial flexibility as debt costs are managed down. Investors may need to look past short-term noise in margins or tax rates, but the core story of a balanced gaming operator with both resilience and digital upside remains intact.
Afyren (ALAFY France): building momentum as industrial ramp-up takes shape
Afyren’s half-year results contained no real surprises, but they underline the transition under way as the company moves from a development phase into industrial scale-up.
Sales remain modest, and still come mainly from services provided to its Afyren Neoxy joint venture. Operating losses held steady, but this was thanks to well-controlled costs, and the balance sheet remains comfortable with a solid net cash position. In other words, Afyren is still in the heavy investment phase where profitability metrics don’t tell the whole story.
What matters now is the operational progress at Afyren Neoxy, its first large-scale plant, which started continuous production in the first half and is on track to deliver meaningful sales and EBITDA breakeven within a few quarters.
That plant is central to the story. Afyren is investing further to lift Neoxy’s capacity and profitability, aiming for 20,000 tonnes of output and a medium-term EBITDA in the mid-teens of millions of euros. The order book already covers several years of output, giving visibility that many early-stage industrial biotechs lack.
The logic is clear: prove the economics at Neoxy, then replicate the model with two more plants over the coming years, supported by customer commitments and a disciplined approach to funding. Management has been clear about controlling cash burn at the parent company while scaling production through project-level financing, an approach designed to keep balance sheet risk in check while still delivering growth.
For investors, Afyren remains a high-risk, high-reward proposition, but the trajectory is starting to come into focus. If Neoxy ramps successfully, it not only validates the technology but also provides the blueprint for scaling into a €150m revenue business with strong recurring margins.
The ability to duplicate the model, maintain pricing power, and potentially consolidate ownership of Neoxy down the line all add to the optionality. The biochemicals sector is not without challenges, from feedstock costs to customer adoption, but Afyren has already secured commercial visibility and shown operational discipline. With the first industrial step now in motion, the next year will be crucial in demonstrating that this niche but promising business can deliver on its ambitions.
Séché Environnement (SCHP France): strong first half tempered by cautious outlook
Séché’s first-half release was another reminder of why the group has become a quiet compounder in the European environmental services space. Revenues rose nearly 15% year-on-year to €580m, ahead of market expectations, with organic growth of 7.5% accelerating into the second quarter. EBITDA jumped by a third to €118m, well above forecasts, lifting margins to 20% from 17.5% a year ago. The main drivers were the full integration of ECO, which delivered accretive growth with margins north of 40%, and a rebound in core French operations, where margin gains of 250bp reflected better mix and operational leverage. Net profit nearly doubled, underscoring how quickly operating improvements are filtering through to the bottom line. Against a weak prior-year comparison, Séché has clearly regained momentum.
But management also made clear that the near-term environment requires some caution. Organic growth was helped by spot decontamination and services contracts, and while France delivered well, international operations outside ECO were softer, with margins slipping due to start-up costs on new contracts.
The group is also facing a less favorable energy price backdrop, which alone is expected to trim €15m off EBITDA this year. With some clients showing a wait-and-see attitude and pricing less buoyant in parts of the portfolio, Séché cut its full-year EBITDA guidance modestly, now targeting €250–260m versus prior ambitions of up to €275m. Operating profit expectations have been reduced by around 10% for both 2025 and 2026, reflecting both energy headwinds and a more conservative view on demand.
Even with that reset, the investment case remains compelling. Séché still expects mid-single-digit growth in 2025, with upside from the pending integration of Flamme in 2026, and margins should continue to creep higher as ECO’s contribution normalises. At around 7x forward EBITDA, the valuation doesn’t look demanding for a business that combines recurring revenue visibility with opportunities to scale internationally.
The balance sheet remains healthy, the pipeline of contracts solid, and the strategy focused on accretive bolt-ons that strengthen core competencies. While near-term growth expectations have been tempered, Séché’s long-term positioning in regulated waste management and decontamination looks unchanged, leaving the stock well placed for investors willing to look through short-term volatility.
Serge Ferrari (SEFER France): early wins from the Transform 2025 plan lift performance
Serge Ferrari has kicked off the year with results that suggest its recovery is taking hold faster than many expected. Revenue in the first half rose more than 10%, helped by stronger demand across regions and a healthier product mix. But the real highlight was profitability: margins widened meaningfully, with operating profit climbing sharply as cost control combined with higher sales to deliver the kind of leverage investors were hoping for. Net income returned to positive territory after last year’s restructuring charges, underscoring how far the business has come since the painful integration of Verseidag-Indutex.
It is still early in the cycle, but this first set of numbers shows the initial payoff from the company’s self-help program. The Transform 2025 plan is clearly starting to leave its mark. The group managed to expand its adjusted EBITDA margin by nearly three points, an impressive feat given the backdrop of raw material inflation and continued supply chain uncertainty.
Growth was particularly strong in the Americas, where volumes accelerated, while Europe provided a more stable base. Working capital has edged up with inventories still elevated, but the balance sheet remains sound and leverage under control.
Management has kept guidance deliberately vague, reflecting the ongoing volatility in costs and the normal seasonality of its business, where the second half tends to soften. The message is one of discipline: focus on trimming fixed costs, keeping working capital in check, and gradually reducing net debt while squeezing more profitability from the existing footprint.
What stands out is how the turnaround is progressing without grand promises, just consistent operational improvement. The company has proven that the margin upside is real, and with revenue trending upward, the leverage effect is material.
Risks remain — geopolitical uncertainty, raw material costs, and uneven demand — but Serge Ferrari is already demonstrating that its transformation plan is more than just a slide deck. With profitability firmly back in positive territory and room for further recovery, the group looks positioned to steadily rebuild investor confidence.
If the second half delivers even part of the momentum seen in H1, the turnaround narrative will gain more credibility, and the stock should continue to benefit from this improving trajectory.
Chargeurs (CRI France): mixed half-year with fashion softness offset by museums
Chargeurs’ half-year results reflected a mixed picture across its different businesses. Group sales slipped slightly, down less than 1% overall, with a notable slowdown in Q2 after a relatively stable Q1. The revenue translated into operating profit of €15m, and margins narrowed modestly.
While the headline numbers were somewhat disappointing, the underlying story is more nuanced. Museum Studios continued to shine, posting strong double-digit growth and improved profitability, while the fashion technologies business faced a tougher environment, weighed down by weaker demand in luxury and a cautious mood in North America. Net profit slipped into the red, but debt levels remained stable, giving the group room to maneuver.
Looking under the hood, the divisions tell very different stories. Museum Studios, now a meaningful part of the portfolio, delivered impressive growth and higher margins, showing the benefits of its expanding order book and solid execution. Novacel, the group’s largest unit, faced some weakness but management remains confident about a recovery given a healthy backlog and signs of orders picking up since May.
The pain point remains fashion technologies, where sales fell more than 8% organically and margins thinned, highlighting how exposed this segment is to global luxury cycles and trade uncertainty. Luxury fibres also struggled, though niche offerings like NATIVA maintained momentum. The bright spot beyond museums was personal goods, a smaller division that showed encouraging growth through new store openings.
The broader picture is of a company still in transition, balancing a solid performer in museums against cyclical headwinds in fashion and fibres. Management has been active on the M&A front, acquiring Chaplin’s World in Switzerland, while also considering divestments such as Novacel. These portfolio moves could reshape the group, though for now execution remains the focus.
Despite a softer first half, the long-term case rests on diversification and improved profitability in growth areas like museums and branded personal goods. The valuation remains appealing relative to peers, suggesting the stock still offers upside if the recovery narrative firms up. For now, investors will be watching closely to see whether Q3 brings signs of renewed demand in the more challenged divisions.
Jacquet Metals (JCQ France): steady results but weak demand still clouds outlook
Jacquet Metals’ picture remains one of limited visibility and ongoing caution. Group sales fell 8% year-on-year, hit by lower volumes and softer prices across its main divisions. Sequentially, the rate of decline eased somewhat in Q2, with volumes stabilising and pricing pressure less intense than in the first quarter. Margins, however, showed some resilience: the gross margin improved thanks to lower inventory costs, while operating profit reached €29m, slightly above forecasts. Net profit was modest at €6m, but cash generation improved as the group kept capex lean, allowing free cash flow to come in positive and leverage to fall.
Overall, the company is showing discipline in a difficult market, but end-demand remains sluggish.
The breakdown by business underlines where the pressures lie. IMS Group, which makes up half of sales, was hardest hit, dragged down by weak demand in Germany and falling prices, resulting in very slim profitability. Stappert held up better, supported by steadier volumes and stronger margins, while the Jacquet division itself delivered a small profit despite sales declines. The acquisition of Commerciale Fond in Italy added some scope benefits, though these were not enough to offset the broader slowdown.
Management continues to highlight that demand is subdued across Europe and that recovery is unlikely in the near term given the geopolitical and macro backdrop. Still, the ability to protect margins in the face of falling prices shows the benefit of tight inventory management and cost control.
Looking forward, the outlook remains challenging. Management remains cautious and sees little chance of a rebound before year-end, pointing to uncertainty in both demand and pricing. Investors will take some comfort from the company’s solid balance sheet, lower gearing, and improved free cash flow, which provide a buffer in a tough cycle. But without a clearer recovery in European steel demand, growth will be hard to achieve.
For now, Jacquet Metals is essentially holding its ground, protecting profitability where possible, and waiting for the cycle to turn. The stock’s valuation is not demanding, but until demand improves, it might be hard to see a re-rating.
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