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
After a volume decline in all segments in Q1 24/25, volume rose in all segments during the crucial Christmas quarter. The overall number of bottles sold grew 3.8%. Group sales, which rose 4.0% to €154.0m (FBe €159.4m; Q2 23/24: €148.1m), were 3.4% below our forecast. But EBIT of €21.6m (FBe €18.2m; Q2 23/24:€16.4m) jumped 31.5%, and was 18.5% above our forecast. EBIT was helped by lower energy costs and the dissolution of restructuring provisions in the France segment, and in the East Central Europe segment by changes in procurement costs as well as the appreciation of the Polish currency. Management now expects sales growth to come in at the lower end of the 5-7% guidance range given in the 2023/24 annual report, but guidance for EBIT and net profit before non-controlling interests stays at €31m-€33m and €20m-€22m respectively. We have made only small changes to our forecasts following the Q2 24/25 results, and we maintain our Buy recommendation and €22 price target.