Standard Profil - comment

Standard Profil management again reiterated their aim of refinancing the RCF (due April 2025) and their HY bond (due May 2026) together, before year-end.  They would not comment further on the process and when prompted by a bondholder if it would involve a par refinancing they were non-committal.  The presentation highlighted Standard Profil’s evolution into #1 position in Europe with 25% market share, #5 worldwide with 8% market share.  However, despite the improving market share, volumes is what matters.  With global automotive markets continue to be volatile leading to lower volumes, especially on 1st generation EV vehicles.  Standard Profil have managed to lower costs, via various cost-saving programs, but ultimately rely on recent contract wins from their increasing backlog to drive top-line revenue.  

Results were released last week, which we commented on previously.  But briefly, on the back of the profit warning In July, the lower volumes in Q2 reduced profit.