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Indus Holding AG Reports Decline in Operating Income and Sales

Indus Holding AG's latest report shows a decrease in both operating income and sales for the first nine months of 2024, alongside revised expectations for the full year. The company has initiated a share buyback program, which may impact its stock performance positively.

Date: 
AI Rating:   4

Indus Holding AG (INHG) has reported its operating income (EBIT) for the first nine months of 2024, showing a decline from 116.9 million euros in the previous year to 95.9 million euros. This significant drop indicates challenges in profitability, which could negatively affect investor sentiment.

Sales for the same period fell from 1.36 billion euros to 1.28 billion euros, underlining a downward trend in revenue growth. Although the company continues to project Group sales between 1.70 billion euros and 1.80 billion euros for the full year, the revised operating income forecast has been adjusted downwards to a range of 115 million euros to 125 million euros, compared to an earlier forecast of 125 million euros to 145 million euros. This reflects impairment losses which could raise concerns among investors.

The anticipated EBIT margin remains between 7.0% and 8.0%, but the downgrade in earnings expectations is a point of concern. Such a drop in operating income and sales growth can cause stock prices to fall as it signals underperformance.

In response to these challenges, Indus Holding AG has initiated a public buyback offer for up to 700,000 bearer shares at 21.65 euros each, totaling roughly 15.155 million euros. This buyback, alongside an additional program to repurchase shares worth up to 5 million euros, may help bolster stock prices by reducing the supply of shares available in the market, potentially driving value for existing shareholders.

Stocks:  INHG