First Berlin Equity Research has published a research update on Schloss Wachenheim AG (ISIN: DE0007229007). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 21.00 to EUR 19.00.

Abstract
Final results for the financial year ending 30 June were below both our forecasts and guidance given with the Q3 results on 8 May. Sales climbed 1.3% to €447.4m (FBe: €459.2m; 2023/24: €441.5m) while EBIT fell 3.7% to €27.2m (FBe: €31.1m; 2023/24: €28.2m). Guidance provided on 8 May was for sales growth of ca. 4% and EBIT at the lower end of a €31m-€33m range. Volume, sales growth and profitability weakened in Q4 as already fragile consumer sentiment was adversely affected by the changes in U.S. trade policy. For 2025/26 SWA’s management is guiding towards slight increases in volume and sales, and EBIT in the range of €30m-€33m. The expected improvement in performance is driven primarily by the Germany and France segments. In Germany consumer sentiment should benefit from the government’s expansive fiscal policy as well as further increases in wages and salaries. In France management is expecting positive changes in the product mix and procurement prices to boost the gross margin. The tariff agreement concluded between the EU and the U.S. in August will dampen economic activity relative to the previous no-tariff position but has at least reduced uncertainty to some degree. We have reduced our 2025/26 sales and EBIT forecasts by 5% and 11.6% respectively in alignment with company guidance. We maintain our Buy recommendation but have lowered the price target to €19 (previously: €21). Upside: 30%.