Colruyt (COLRBB; unrated) FY24 Results (12m to March)

The Belgian based retail conglomerate has reported firm FY24 results. Guidance for flat operating & net profit looks in line with consensus but it's flagging headwinds through a cautious tone. Nothing of concern in credit for us with BS tidy; net debt (including leases) of €93m on cash & eqv's €775m. It has a single €250m Feb 28s (bullet) trading at Z+60. We hope it issues more into local markets; unrated with net leverage of 0.1x could bring value. 28s were issued as a 5Y at ~Z+90.

• Revenue was +11.9%yoy and ex. the increased stake in Newphrama (online pharma, from 61% to 100%) & acquisition of Degrenne Distribution (a French food supplier, €110m revenue) it grew +9%. It left revenues at €10.7b, gross margins were up 110bps at 29.8% and EBITDA came in at €893m on a 8.2% margin (+120bps yoy). Food inflation & market share gains are helped the co as did normalising cost inflation (including in energy and other targeted reductions).
• Guidance is to " match the operating profit and net result" of FY24. It's pointing to declining food inflation. It also adds "increasing number of independent retailers open on Sundays" and "price and promotional pressure in the Belgian retail expected to persist".
• Equity takes here.