Robertet
After adding Robertet to my “collector’s corner” a few weeks ago, Robertet published 2024 results 2 weeks ago.
With 90 mn EUR Net Income or 43 EUR EPS, results came in a little bit lower than based on the 6M numbers that I assumed in the post:
The 2025 outlook was “cautiously optimistic”:
They announced to increase the dividend to 10 EUR per share. Cash flow has been quite good as well with ~70 mn EUR free cash flow which they used mainly to reduce net debt further.
Overall I would say in line with expectations and something to watch, especially if and how tariffs will have an impact.
DCC Healthcare Disposal
Late last year, DCC surprised a lot of investors with a strategic review and the decision to sell both, the healthcare and technology division.
Initially, the stock reacted well, only to nowe fade back to the level before the announcement:
A week ago, DCC said that despite the currently difficult circumstances, they managed to sell the Healtcare division for a total consideration of 1.050 mn GBP to a PE fund.
Interestingly, this had no positive impact at all on the share price. I find that quite surprising, as they managed to sell this at ~12x 2024 Operating profit and the stock as such is trading at ~8,8x EV/EBIT.
DCC will return most of the proceeds to shareholders after the deal closes in Q3.
Some analysts seem to have expected a higher selling price, which I find interesting given the current state of the PE industry.
Personally, I do think that DCC looks quite attractive at these levels.
Eurokai 2024 results
Eurokai was clearly one of my better performing ideas since I posted the initial write-up in February 2024.
This week they released the annual report 2024, which at first sight looks quite encouraging:
EPS went up by +60% from 2,33 to 3,74 EUR per share, the dividend will be increased by 1,80 EUR to 2 EUR per share.
Operationally, across all terminals, Eurokai handled around +10% more containers than in 2023.
The earnings include a one time effect as due to increased traffic, the previously written down terminal in Wilhelmshaven had to be written back up again. If I make no mistake, the effect at Eurokai Level is around 19 mn EUR (50% of 38 mn at Eurogate) or ~1,4 EUR per share.
So at first sight, then most of the increase in earnings is basically a one time effect. I had seen some discussions estimating that the “nomralized” EPS would be only like 2,50 EUR per share.
But not so quick. There is more to consider.
This one time positive effect mentioned above actually led to a significant negative one time effect due to the “Golden Share” structure where there is a 15% interest on Local GAAP earnings at TopCo level.
If you actually divide the stated net income by the number of shares (pre Golden share), one would get 69,5 mn EUR/ 13,47 mn shares = 5,17 EUR per share EPS for 2024.
The difference to the stated 3,74 EUR per share, (i.e. -1,42 EU per share), is the allocation to the Golden Share.
Eurokai shows the calculation of EPS on page 132 of the German report:
Now in this case, it is a pure coincidence that the 19 mn EUR is the same number as the positive one-off IFRS effect.
I would calculate the “normal” share for the Golden share as follows: (65,9-19)*0,15= 7 mn EUR or 0,53 EUR per share. This equals a 15% interest in the economic (IFRS) result of the Group which in the long term should converge with the German GAAP result at TopCo level.
So my normalized EPS for 2024 would look as follows:
((65,9-19)*0,85)/13,47= 3,19 EUR per share for 2024 without the various special effects.
I haven’t yet had the time to calculate the net liquidity for Eurokai, but based on the operational development it most likely went up. Stated liquidity which only partially shows the real picture went up by 30 mn EUR.
Management (again) guided conservative:
Clearly, the one time gain will not be repeated, on the other side, the positive operating effects of the new Gemini Alliance (Hapag Lloys & Maersk) are only kicking in from February 2025.
Knowing Eurokai, I would assume that at an operational level, things don’t look too bad and the “normalised” result of 2024 of around 3,19 EUR might be quite easily achieved. And yes, final EPS might be below the 3,74 from 2024, but overall things seem to move into the right direction.
Despite the share price increase compared to the initial write-up, the stock is still ridiculously cheap.
And in the meantime, one gets paid still around a 5,7% dividend yield for waiting.