Schloss Wachenheim AG: Buy Recommendation Reaffirmed

First Berlin Equity Research has issued an update on Schloss Wachenheim AG, maintaining a "buy" recommendation while adjusting the target price from €20 to €19. Despite facing strong comparative quarters and subdued consumer sentiment in France and Germany, the company reported modest growth. For Q2 25/26, volume growth was 1.6% and sales increased by 0.8% to €155.2 million.

EBIT rose by 1.4% to €21.9 million, though Germany and France's segment margins were squeezed by rising non-personnel costs. However, East Central Europe's EBIT margin reached 19.6%, the oldest since 2020. Moderate economic recovery is anticipated, supported by wage increases surpassing inflation.

The company's management forecasts a 3% to 6% sales increase for FY 25/26, with EBIT projected between €30 million and €33 million. Despite revised downwards EBIT forecasts, the fair value for SWA shares remains at €19.