First Berlin Equity Research has published a research update on Schloss Wachenheim AG (ISIN: DE0007229007). Analyst Simon Scholes reiterated his BUY rating and maintained his EUR 22.00 price target.

Abstract
Volume fell 2.8% in Q1 24/25, driven mainly by a decline in exports from France. Sales outperformed volume, declining 0.3% to €102.4m (Q1 23/24: €102.7m; FBe: €105.3m) due to price rises implemented by SWA to cover higher raw material costs, as well as product mix and foreign currency effects. EBIT came in at €4.2m (Q1 23/24: €6.5m; FBe: €5.5m). Exports from France have been falling for a year and we see limited scope for further declines. We expect France segment y-o-y sales comparisons to turn positive during the remaining quarters of the 2024/25 financial year (ends 30 June). At the same time, consumer confidence is improving moderately across SWA’s markets as inflation falls and recent losses in purchasing power are at least partially compensated by wage and salary rises. Management is upbeat about the crucial Christmas quarter and has reiterated full-year guidance for a 5-7% increase in sales and EBIT in the range €31m-€33m. We maintain our Buy recommendation at an unchanged price target of €22.