DO & Co: Q4 preview: Growth case holds altitude - NuWays AG Research
DO & CO looks set to report solid Q4 results on June 11.
ANNONS
Sales are seen up 11% yoy to € 583m, carried by Airline Catering (c. 80% of group), which should grow 13% to € 503m on sustained volume growth at the Istanbul hub and the ramp-up of recently won contracts (e.g. with ANA or Air Canada); reported growth should also be far less fx-distorted than in the heavily skewed Q3, where headwinds were a significant drag. International Event Catering should rise 7% yoy to € 37m, helped by an earlier start to the F1 season, DOC's flagship event contract, which pulled an extra Grand Prix into the quarter vs. prior year (the Japanese GP moved to late March). Restaurants, Lounges & Hotels, the smallest division, should be broadly flat (+1% yoy to € 43m) in a seasonally quiet quarter. For the full year, this implies group sales of € 2,450m (+7% yoy).
All in, the growth and margin-expansion case remains intact, with near-term macro headwinds appearing increasingly contained and priced in. BUY, unchanged PT of € 250, based on DCF.
