Banks, Financial Services, Lithuania, Textile
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Thursday, 28.03.2024, 13:54
Swedbank reiterates Neutral, EUR 2.9 price target on Lithuania's Apranga
Swedbank's analysts estimate in an equity research note that Apranga's consolidated net sales rose by 10.8 % in the fourth quarter of last year from a year ago to around 45.3 mln. euros, exceeding their forecast by 2 %, and that sales in the full year 2015 grew by 8.4 % to 159 mln. euros.
They estimate that the group's EBITDA last year edged down by 1.1 % to 18.7 mln. euros and the EBITDA margin fell to 11.8 %, from 12.9 % in 2014.
"We believe that most of the challenges of 2015 will be less acute this year: the tough competition with H&M after its aggressive roll-out in 2013-2014 will level off, the decrease in the number of Russian and Belarusian customers will have a milder negative effect and the temporary shift in consumer focus to large-ticket items, such as cars and housewares, will wane," the analysts said.
They forecast that Apranga's consolidated net sales this year will increase by 8 % to 171 mln. euros, EBITDA will rise by 10.7 % to 20.7 mln. euros and the EBITDA margin will reach 12.1 %.
Apranga's shares, quoted on the blue-chip Main List of the Nasdaq Vilnius stock exchange, closed at 2.58 euros on Monday.