11. November 2021 | 13:02 CET
Bayer, TUI, Sativa Wellness: Figures move share prices
The reporting season is drawing to a close. Overall, most companies have been convincing, and the stock markets have been very friendly in recent weeks. Bayer published positive quarterly figures, raised its forecast for the full year and thus convinced the analysts from DZ Bank. Sativa Wellness benefits from the boom around cannabis and CBD. The still-new boom is growing strongly and is already in the black. At TUI, the operating figures play less of a role. The development of the Corona figures and, thus, possible travel restrictions in the coming winter are more critical. Read more about all three shares here.
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ISIN: BAYER AG NA O.N. | DE000BAY0017 , TUI AG NA O.N. | DE000TUAG000 , SATIVA WELLNESS GROUP INC | CA80403E1043
Sativa multiplies sales and is already profitable
The legalization of cannabis in more and more countries is creating a billion-dollar industry. Sativa Wellness is benefiting from this. The Canadian Company aims to become one of the leading providers of high-quality CBD products and CBD services in Europe. Currently, the young Company is focused on the UK and is active in three business areas. CBD products for consumers are offered under the Goodbody Botanicals brand. With its subsidiary PhytoVista, the group operates CBD and hemp testing laboratories. Goodbody Wellness clinics provide services - including COVID testing - for clinics and direct-to-consumer and direct-to-business services via a telemedicine consulting service. Sativa now has more than 80 clinics in operation. And the group's business is humming.
In the third quarter, the Company exceeded its own targets. Sales were multiplied by 977% to CAD 8.60 million compared to the same quarter of the previous year. Gross profit increased by 990% to CAD 4.59 million. The gross profit margin was 53%, the same as in the previous year.
A net profit of CAD 14,000 was achieved, compared to a loss of CAD 1.19 million in the same period last year. For the first nine months of the year, Sativa's revenue increased 724% to CAD 16.94. There were also strategic successes. A German distribution agreement for CBD products was signed with partner Lexamed GmbH. Also, the launch of a CBD oil with a guarantee at the best price and quality was announced. A membership program was introduced in the online business, and larger 30ml bottles were added to the product range. "I am very pleased to report that the Company's significant growth accelerated in the third quarter. We are exceeding expectations, and the strategy introduced earlier this year validates our mission to provide consumers and partners with a well-rounded health and wellness company," said CEO Geremy Thomas. Given the strong growth and profitability at the Company's early stage, the stock still seems to have a lot of upside potential. Sativa is currently only valued at just under CAD 30 million on the stock exchange.
Bayer earns more and raises full-year forecast
Bayer has exceeded expectations with its figures for the third quarter. The DAX-listed Company increased sales by 15% to EUR 9.78 billion and the operating result (EBITDA) by 16.4% to EUR 2.09 billion in the reporting period. Net earnings per share were EUR 1.05 compared with EUR 0.81 in the previous year.
As part of the publication of the quarterly figures, the earnings forecast for the full year was also raised slightly. In 2021, Bayer continues to expect sales of EUR 43 billion. The adjusted EBITDA margin is expected to be 25.5% (previously: 25%). Earnings per share are expected to be between EUR 6.10 and EUR 6.30 (previously: EUR 6 to EUR 6.20). Following the publication, DZ Bank raised the fair value for Bayer shares from EUR 65 to EUR 67 and confirmed its buy recommendation. The earnings momentum of the agar and pharmaceuticals group is positive, the analysts said. Earnings expectations were raised slightly. The remaining glyphosate risk was manageable due to provisions, they said.
Is TUI ready for winter?
At TUI, the focus is currently less on the operating figures and more on the Corona figures. In recent days and weeks, the tourism group has benefited from the opening in the USA to tourists. But looking at the current new infections with COVID-19 in numerous countries, the outlook for the coming winter season seems less rosy. New restrictions on international travel cannot be ruled out. At least TUI's capital cushion seems sufficient to get through the winter without further measures. At least, this is what the analysts at Bernstein Research believe. The analysts said that TUI effectively has two and a half years to repair its balance sheet and tackle other tasks without raising fresh money. Therefore, they downgraded the TUI share from "Underperform" to "Marketperform" after all. However, the price target remained unchanged at EUR 2.50.
At Bayer, the figures are right, and the glyphosate risk seems to be manageable at the moment. Sativa benefits massively from the boom around CBD and cannabis and is still attractively valued. Before winter, there is no reason to buy the TUI share.