Siegfried Holding Shares Drop

In a recent turn of events, Siegfried Holding shares experienced a significant drop after the company's issuance of their 2024 guidance fell below the expectations of the consensus.

Share Performance

At 1314 GMT on Tuesday, shares plummeted by 8.1% to CHF839.50, signifying a noteworthy market reaction.

Company Projections

The Switzerland-based life-sciences company anticipates sales growth in the low single-digit percentage range for 2024, with expectations of a core earnings before interest, taxes, depreciation, and amortization (EBITDA) margin at or above the previous year's level of 21.5%.

Analysts' Insights

Analysts surveyed by Vara Research had originally forecasted Siegfried's 2024 sales to reach 1.33 billion Swiss francs ($1.51 billion), projecting growth at a constant currency rate of 5.2%. They also expected a core EBITDA of CHF292 million, implying a margin of 21.9%.

Contradictory Expectations

However, the company's outlook suggests a core EBITDA ranging from CHF270 million to CHF280 million for 2024, thus falling below consensus expectations by 3% to 7%, according to Citi analyst Vineet R. Agrawal.

Financial Highlights

Siegfried reported net sales of CHF1.27 billion in 2023, up from CHF1.23 billion the previous year. Despite this increase, net profit decreased to CHF112.8 million from CHF156.5 million, while core EBITDA saw a marginal uptick of 0.3% to CHF273.3 million.

Shareholder Payout Proposal

In light of these financial outcomes, Siegfried has proposed an increase in the distribution to shareholders by CHF0.20, aiming to raise it to CHF3.60 per share.

The future trajectory of Siegfried Holding remains uncertain as investors adjust to the revised guidance and financial performance.