Casino Guichard Parent Secured New Loans, CropEnergies Profit Gets Squeezed

Sarla Buch
17 Sep, 2018
New York City

AlzChem plans to expand production capacity after profit soared 10%. CropEnergies profit declined on lowered ethanol price and higher raw materials and energy costs. Rallye soared after it signed new credit facility of

[R]4:00 PM Frankfurt – AlzChem plans to expand production capacity after profit soared 10%. CropEnergies profit declined on lowered ethanol price and higher raw materials and energy costs. Rallye soared after it signed new credit facility of €500 million. H&M AB soared 17%.[/R]

In London trading, FTSE 100 index edged up 0.10 to 7,304.14 and in Frankfurt the DAX index slipped 32.75 or 0.3% to 12,092.14.

In Paris, CAC 40 index rose 3.17 to 5,355.74.

AlzChem Group AG slipped 0.6% to €3.42 after Germany-based chemical intermediates maker said revenues in the first-half ending in June jumped 6.8% to €195.2 million.

Net income in the period soared 10.3% to €16.1 million from €20.6 million in the same period a year ago and diluted earnings per share advanced to €0.16 from €0.14.

The intermediates maker said segment sales in the period surged 14.7% and profit margin improved to 26% from 23.8% in a year ago period.

AlzChem said it plans to triple its production capacity for Creamino, a source of creatine used in dietary supplements with an investment of €50 million and production is scheduled to start in mid-2019.

In the second-half ending in December 2018, AlzChem forecasted sales growth in the range of 3% to 7% and operating profit between €49 million and €54 million from a year ago period.

CropEnergies AG gained 1.1% to €4.68 after Germany-based bio-ethanol producer reported revenues in the first-half ending in June plunged 14.5% to €393.2 million.

CropEnergies said operating profit in the period tumbled 49.8% to €33.4 million from €66.5 million in the same period a year ago.

The neutral alcohol producer said decline in revenues was driven by the reduction of revenues and operating profit decline was led by lower ethanol price and higher raw materials and energy costs.

The bio-ethanol producer forecasted fiscal 2018 revenues in the range of €810 million to €860 million and operating profit between €25 million and €55 million.

Rallye SA soared 12.5% to €10.45 after France-based online food and sporting goods retailer said it signed a confirmed credit facility maturing June 30, 2020 for €500 million from a consortium of five banks.

The parent of French supermarket chain said this additional credit facility will expand the current liquidity and does not require pledging of shares of Casino.

The heavily indebted supermarket chain is looking to sell €1.5 billion in the first quarter of 2019.

The new loan facility ahead of the bond refinancing lifted the stock of the parent Rallye by 4% and Casino stock by 6%.

BNP Paribas, Natixis, HSBC, Credit Agricole CIB and Credit Industriel et Commercial provided additional credit lines.

Hennes & Mauritz AB surged 17.3% to 144.48 Swedish kronor after Sweden-based fashion apparel retailer said sales in the third-quarter ending in August soared 9% from a year ago to 64.8 billion kronor.

The retailer said sales in the U.S., France, Italy and Belgium were considerably affected by the implementation of new logistics systems during the spring.