Europe Movers: Beiersdorf, Deutsche Bank, Dassault Systemes, Essentra, Kering, Reckitt Benckiser, Worldline

Inga Muller
25 Oct, 2023
Frankfurt

European market indexes lacked direction ahead of interest rate decisions from the European Central Bank on Thursday.

The DAX index decreased 0.2% to 14,855.62, the CAC-40 index fell 0.3% to 6,875.12, and the FTSE 100 index eased 0.1% to 7,383.05.

The yield on 10-yetrar German bonds increased to 2.85%, French bonds traded higher to 3.49%, the UK gilts edged up to 4.57%, and Italian bonds inched higher to 4.89%.

Deutsche Bank AG increased 6.5% to €10.12 after the German bank posted better-than-expected third-quarter results.

Revenue in the third quarter increased 3% to €7.13 billion from €6.92 billion, and profit attributable to shareholders declined 8% to €1.03 billion from €1.12 billion.

Provision for credit losses dropped 30% to 245 million from 350 million, and the bank confirmed provision for the full year to be near the upper end of its previously estimated range of between 25 and 30 basis points.

Deutsche Bank forecasted full-year 2023 revenue of around €29 billion, higher than €27.2 billion in 2022.

The bank also announced its plans to launch its stock repurchase plan and pay dividends.

Worldline SA plunged 57% to €9.78 after the French payment services provider lowered its full-year growth estimate.

The payment services provider added that it has severed relationships with several merchants "in light of the increase in cybercrime."

The company lowered its organic sales growth for 2023 to between 6% and 7% from the previous estimate of between 8% and 10%.

Worldline also forecasted the 2023 operating margin before depreciation and amortization to decline 150 basis points from the previous estimate of an increase of 100 basis points.

Reckitt Benckiser Group Plc declined 4.9% to 5,628.0 pence after the household products maker reported weaker-than-expected comparable sales in the third quarter.

Revenue in the third quarter declined 3.6% to £3.6 billion, and comparable sales increased 3.4%.

Higher prices are impacting sales volume as consumers look for alternative products or brands.

The revenue increase in the quarter was driven by a 1.6% decline in volume and a 7.5% jump in price increases passed to consumers.

The company forecasted comparable sales growth for the full year 2023 in the range of 3% to 5%.

Beiersdorf AG added 1.4% to €123.80 after the maker of Nivea-branded household products raised its full-year sales estimate.

The company said revenue in the first nine months ending in September increased 7.8% to €7.3 billion, followed by a 17.5% jump in sales in Nivea and a 24.8% increase in Derma, offsetting a 15.8% decline in skin-care and anti-aging brand La Prairie.

Beiersdorf raised its guidance for the consumer business segment for the full year to "low-double-digit organic sales growth" and confirmed its forecast for an EBIT margin excluding special factors at +50 basis points higher than in the previous year.

Essentra Plc decreased 4.5% to 141.20 pence after the maker of essential products forecasted full-year adjusted profit near the low end of its estimate.

Dassault Systemes SE rose 8.3% to €37.86 after the French software developer raised its annual profit outlook.

Kering SA fell 3.6% to €394.15 after the luxury products maker reported a decline in revenue in the third quarter.

Fresnillo Plc eased 0.9% to 524.80 pence after the precious metals miner reported a decline in gold and silver output.