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Free AccessElo/Auchan (ELOFR; NR, BB Neg) S&P Comments on property arm
S&P has done a standalone comment on the property arm which it treats as a subsidiary.
- It's forecasting €380-400m EBITDA per year over 2024/25 (FY23; €392m).
- Reminder S&P sees group EBITDA at €1.2b (-17%yoy) and therefore implies S&P's retail EBITDA assumption is €800-820m for FY24 (-29%yoy). Given 1H's €166m it still expects a strong pick-up to to €644m (-15%yoy) in the 2H.
- It sees cash generated from the arm being used to service debt and capex (i.e. leverage neutral).
- It expects interest cover to remain in 2.8-3x and leverage in 8-9x range.
- It says company has signed asset sales of €300m in 2024.
- Again there is cautionary tone, mainly around Auchan flagging it will increase "interaction with NIH with regards to its hypermarket surface restructuring plans". S&P is worried on a capex blowout from that which would drag on debt levels.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.