Adidas, BMW, EuroAPI, Knorr Bremse, Roche and Proteste Investe

Adidas, BMW, EuroAPI, Knorr Bremse, Roche and Proteste Investe


Revenue rose 4% in the second quarter, but operating profit was down 28% due to higher costs. Therefore, Adidas reduced, for the second time this year, the forecast for 2022: revenue + 5% to 10% and operating profit of 7%.

The reason lies in weak Chinese demand (-35% in the quarter) due to the lockdown, but more structurally, local brands are gaining market share. This affects Adidas’ growth in China, an important market in terms of sales and profits.

However, not everything is dark. E-commerce (20% of revenue) remains strong. And, excluding China, revenue increased by 14% thanks to the Americas.

But the second half will see, at least in the West, inflation dampening consumer appetite. With the arrival of a new CEO in 2023 (3 years earlier than expected), Adidas hopes to turn the page with a strategy focused on luxury and luxury. Will it be able to achieve its 2025 target of annual revenue growth of between 8 and 10% and an operating profit of 14%? It won’t be easy!

Prospects remain volatile. In the event of more pessimism, investors may further punish the price. Stay away. See advice.


The German manufacturer now expects to produce fewer cars in 2022 than in 2021, when it reached a record 2.52 million units.

The review comes as BMW fears weakening demand in the coming months, but is not considering gas supply disruptions that could affect factories in Germany.

Despite the worsening economic outlook, BMW believes it can handle the downturn in the auto market. First, it continues to benefit from strong demand for the electric range, whose sales increased by 110% in the first half of the year.

With the successful launch of the iX and i4, it is on its way to achieving the sales target for all electric vehicles, which is to double by 2021. Second, the brand image and charging position are assets that allow adoption. more simply, increasing the cost to its customers.

Therefore, we are confident in BMW’s ability to achieve the target operating margin of 7-9% in the automotive division (10.3% in 2021). We maintain our earnings per share forecast at 27 euros in 2022 (17 euros excluding significant gains in the Chinese subsidiary) and 15 euros in 2023.

In reviewing the sales forecast for 2022, BMW expects economic problems. Although stocks are not expensive, uncertainty about the economy suggests more prudence. See advice.


The former subsidiary of Sanofi, listed since May, does not disappoint: Euroapi has gained 18% since our takeover board.

In fact, the first results from Euroapi, which specializes in functional organs, were positive. In the first six months, revenue increased by 10% and earnings per share reached 0.18 euros per share.

The CDMO department saw sales increase by 22 percent and the number of new projects in the first half of 2022 is already the same as in 2021. With these results, the group confirmed its forecast for 2022. See advisory.

Knorr Bremse

The results of the second quarter confirm the difficulty of Knorr-Bremse, specialist in braking systems, but also its strength. The group recorded stable sales with a 7% increase in orders.

The latter remains high, confirming a good position in the markets. In turn, profitability decreased: 13.5% of the EBITDA amount against 18.1% a year ago and 15.2% in the first quarter.

The scope is reduced in operations on trains and freight cars. The group shows the costs of leaving the Russian market and inflation of costs. However, what weighs more heavily on operations and profits is China’s economic slowdown and frequent lockdowns.

And for management, the next few months will continue to be difficult in China. So the 2022 targets have been scaled back, but this is something that investors have been focusing on for months.

Above all, Knorr-Bremse continues to grow in Europe (49% of revenue) and North America (24.5%), the balance sheet is strong and it enjoys a good position in its markets.

The group’s leadership and added value are not at risk from the deterioration of the Chinese market. But as an industrial company, Knorr-Bremse is under pressure as the economy worsens. See advice.


2023 will be marked by changes on the Swiss pharmaceutical front. Thomas Schinecker, the current head of the Diagnostics division, will become CEO from next year, replacing Severin Schwan, who will take over as chairman of Roche’s board of directors.

We do not expect a change in strategy and the new leader will continue to transform Roche beyond its traditional oncology field. The diversification is needed to offset revenue losses from competition from biosimilars to anticancer drugs Herceptin, Avastin and MabThera/Rituxan.

In the first half, products such as Hemlibra (hemophilia; sales +30%) and Ocrevus (multiple sclerosis; sales +17%) continued to play a leading role in the Pharmacy category (sales +3%).

As for the Diagnostics business, sales grew by 11%, still supported by the Covid tests. Roche already expected a reduction in demand for these in the second half of the year, so it maintains its 2022 expectations.

Half-year results were solid. The need for testing will decrease, but new drugs will continue to support growth. Roche remains an attractive long-term investment bet. See advice.