DE40: What the earnings of key German companies have shown❓

• German DAX loses bullish momentum
• Numerous releases of companies' quarterly results
• HelloFresh clearly beats forecasts for adjusted EBITDA

General market situation:

Thursday in European financial markets brings a deterioration in market sentiment. The German DAX is currently losing close to 0.56%, the CAC 40 is losing 0.72%, and the Euro Stoxx 50 view is losing 0.65%. The deterioration in sentiment is primarily the result of a mixed session in APAC markets and a bump in Meta Platforms' shares following quarterly results. In Germany, investors' attention is focused on incoming quarterly results of companies. Selected descriptions can be found below.

European companies traded down during Thursday's trading session at the moment. The bullish sentiment was broken as a result of a mixed session in APAC markets and a bump in Meta Platforms shares following the release of quarterly results. Source: xStation 5

Germany's benchmark DE40 has been posting 0.50% declines in today's session. At the moment, the 50-day EMA (blue curve) appears to be the most important short-term support point for the index. Local resistance remains the peak near 18,800 points and, from a more local perspective, the peak zone near 18440 points. Source: xStation 5

News:

In Germany, we learned a number of quarterly earnings reports from companies today. Below you will find selected financial metrics and a brief commentary on each company:

Deutsche Bank (DBK.DE) - weaker results lifted the bank's shares by 0.6%

FIRST QUARTER RESULTS

• FICC sales and trading revenues €2.50 billion, estimates €2.41 billion 
• Core Tier 1 capital ratio 13.4% vs. 13.6% y/y, forecast 13.7%
• Net revenues €7.78 billion, +1.3% y/y, estimate €7.73 billion
• Asset management revenue €617 million, +4.8% y/y, estimate €628.7 million
• Investment banking revenue €3.05 billion, +13% y/y, estimate €2.83 billion
• Private Banking revenues €2.38 billion, -2.5% y/y, estimated €2.42 billion
• Corporate Banking revenues €1.88 billion, -4.8% y/y, estimated €1.91 billion
• Net profit €1.28 billion, +10% y/y
• Profit before tax €2.04 billion, +9.9% y/y, estimated €2.07 billion
• Adjusted expenses €5.00 billion
• Provision for credit losses €439 million, +18% y/y, estimated €476.6 million
• Non-interest expenses €5.31 billion, -2.8% y/y, estimated €5.21 billion
• Cost-to-income ratio 68% vs. 71% y/y, 67.5% estimate

Comment: outlook remained relatively unchanged, credit losses remained high and capital disappointed. Group revenue rose about 1%, while trading in fixed-income instruments rose 7% in the first quarter.

Symrise (SY1.DE) - sales exceed expectations

• Sales €1.29 billion, estimated €1.27 billion
• Sales of taste, nutrition and health division €775.2 million, estimated €792.1 million
• Sales of taste, nutrition and health division % (y/y) +7.5%, estimated +7.75%
• Sales of fragrance and care products €516.4 million, estimated €481 million
• Fragrance and care segment sales % (y/y) +13.7%, estimated +8.52%
• Organic sales +10.9%, estimated +8.86%

Comment: the company confirmed its business growth and profitability targets for 2024. The growth is estimated at 3%-4% in the long term. Ebitda margin is expected to reach 20% in 2024. However, the company's shares are currently losing 2.5%.

Delivery Hero (DHER.DE) - Updates reassure investors

ANNUAL FORECAST

• Total segment revenue +18% to +21%, previously it was +15% to +17%
• Gross merchandise value +7% to +9%
• Still expects adjusted Ebitda of €725 million to €775 million, estimated €752.4 million

FIRST QUARTER RESULTS

• Gross merchandise value €11.79 billion, estimated €10.77 billion
• Gross merchandise value in Asia 6.14 billion euros
• Middle East and North Africa gross merchandise value €2.75 billion
• Gross merchandise value in Europe 2.13 billion euros
• Gross merchandise value in the Americas 775.6 million euros
• Integrated industries gross merchandise value €648.3 million
• Total segment revenues €2.95 billion

Commentary: The online food ordering service company delivers an update that analysts find reassuring, with gross merchandise value ahead of expectations. Delivery Hero confirms that Glovo should achieve positive EBITDA in the second half of the year, and that Dmart's operations will approach EBITDA breakeven by the end of fiscal 2024. The company's shares are currently gaining 9.5%. 

HelloFresh (HFG.DE) - Adjusted EBITDA beats market consensus

FIRST QUARTER RESULTS

• Adjusted Ebitda €16.8 million, -75% y/y, estimated €6.48 million 
• International adjusted Ebitda 28.9 million euros, +3.2% y/y
• North America adjusted Ebitda 26.4 million euros, -65% y/y
• Revenue €2.07 billion, +2.8% y/y, estimated €2.04 billion
• Sales at constant exchange rates +3.8%, estimated +2.33% 
• Adjusted Ebitda margin 0.8% vs. 3.3% y/y, estimated 0.32%
• Average order value €64.60, +5.6% y/y, estimated €62.82
• Orders 31.98 million, -2.6% y/y, estimated 32.61 million
• International orders 13.51 million, -2.8% y/y, estimated 13.45 million
• North American orders 18.46 million, estimated 18.68 million

ANNUAL FORECAST

• The company still expects adjusted Ebitda of €350 million to €400 million, estimated €345.9 million
• Company assumes sales at constant exchange rates +2% to +8%, estimated +4.33%

Comment: the company's shares are gaining 4.3% at the time of this writing. Confirmation of forecasts for this year and better EBITDA figures support the company's shares.

Other news from individual companies included in the DAX index. Source: Bloomberg Financial LP