Schloss Wachenheim AG: Buy Rating Reiterated Despite Challenges

First Berlin Equity Research has updated its analysis on Schloss Wachenheim AG, maintaining a "Buy" rating while adjusting the target price from €21 to €19. This update follows final results for the financial year ending June 30, indicating mixed performance metrics. Sales increased by 1.3% to €447.4 million, yet fell short of expectations set at €459.2 million, and below SWA's Q3 guidance predicting a 4% sales growth.

EBIT decreased by 3.7% to €27.2 million, missing the earlier forecast of €31.1 million. The company faced headwinds in Q4 due to adverse effects of U.S. trade policy changes on consumer sentiment. Looking forward to 2025/26, management anticipates slight volume and sales growth with EBIT projected between €30 million and €33 million, driven by Germany and France segments.

SWA's approach benefits from Germany’s fiscal policy and expected wage increases, while France anticipates a positive product mix and procurement price changes. The EU-U.S. tariff agreement limits economic impact but reduces uncertainty.