Before the Bell: Belgian stock enters the Euro Stoxx 50

Spadel reports sparkling results, Nestlé fires its CEO with immediate effect, and Gimv posts returns while reaffirming its targets.

While European markets are technically independent from the United States, in practice traders on the old continent struggle to find direction without Wall Street as a guide. With U.S. markets closed on Monday for Labor Day, European investors failed to set the tone. Paris and London each eked out a +0.1% gain, while Frankfurt rose +0.6%. The Euro Stoxx 50 gained 0.3%. HAL Trust (+4.5%) and Rheinmetall (+3.5%) performed well, while AMG (-1.9%), Burberry (-3%), and Alfen (-3.4%) fell back. In Brussels, the Bel20 finished flat. Lotus Bakeries (+2%) and Ackermans & van Haaren (+1.7%) had a strong day, while Elia (-1.6%) slipped. Outside the index, Recticel (+3.2%) and Van de Velde (+2.3%) advanced, while Ekopak dropped 7.3% after weak results.

In Tokyo, the Topix gained 0.25% this morning. The Hang Seng Index lost 0.8%, though Xiaomi (+2.8%) and BYD (+1.9%) rose. Carmaker Nio, known for its swappable batteries, will report later today. After the close, Belgian REIT Care Property Invest also publishes results. On the macro front, eurozone inflation data and U.S. business confidence figures are due later today. Bloomberg reported this morning that Argenx will be included in the Euro Stoxx 50 later this month—news that will almost certainly trigger index funds and asset managers to add the Belgian biotech to their portfolios.

Sparkling mineral water

Spadel reported strong results after the bell yesterday. The producer of Spa Rood, Spa Blauw, and other beverages saw sales rise 10.8% in the first half, driven mainly by stronger demand rather than higher prices. Operating profit increased 12.6% to nearly 34 million euro, while net profit rose 10.7% to 26.8 million euro. Spadel remains a thinly traded stock on a market not known for liquidity. Exactly ten years ago, in September 2015, the du Bois family—its reference shareholder—launched a 95 euro-per-share offer for the roughly 9% of shares it did not yet own. At the time, the stock traded at 80 euro. Brussels investor André de Barsy and several minority shareholders rejected the offer as too low, and to this day 7% of the shares remain outside the du Bois family’s control. Today the stock trades at 212 euro—though that same price was already reached seven years ago.

Gimv unshaken by weak dollar

Private equity group Gimv booked a 4.7% return on its portfolio in the first half—a solid result. Unlike peers such as Sofina and Brederode, which are heavily invested in dollar-denominated assets, Gimv focuses primarily on Belgium and Europe. At the end of the quarter, its net asset value stood at 52.4 euro per share, compared to a market price of 44.2 euro yesterday. Management noted that significant investments were made in recent months and confirmed its long-term growth plan first outlined at its Investor Day on January 22. That framework rests on three strategic pillars: doubling the portfolio from 1.7 billion to 3.5 billion euro, raising annual returns from 15% to 17.5%, and extending the investment horizon.

Did you know…

Laurent Freixe was fired last night after just one year as CEO of Nestlé? Freixe, who had been with the Swiss food giant since 1986, was forced to resign immediately after it emerged he had a relationship with a direct subordinate—against company policy. His role will be taken over by Philipp Navratil, who until yesterday headed Nestlé’s Nespresso division.

This article was translated from Dutch and was originally published on Spaarvarkens.be.