Bois Sauvage shares rise as chocolate division shows solid growth

Compagnie Du Bois Sauvage SA (CBOS) reported stable Net Asset Value (NAV) per share at €499 for H1 2025, maintaining its year-end 2024 level. The company's Chocolate Division demonstrated strong operational performance with 3.7% sales growth and an estimated 17.0% EBITDA margin. However, CBOS recorded a €10 million impairment on its Viventions stake due to an unfavorable cycle in the lid industry. Despite this, the discount to NAV narrowed from 54% to 49% during the period, suggesting a potential re-evaluation of its underlying assets by the market.

Analysis

Compagnie Du Bois Sauvage SA (CBOS) reported a stable financial position for the first half of 2025, with its Net Asset Value (NAV) per share holding steady at €499, unchanged from year-end 2024. A key driver of operational strength was the company's Chocolate Division, which delivered 3.7% sales growth and a robust estimated EBITDA margin of 17.0%. This positive performance was, however, offset by a €10 million impairment recorded on its Viventions stake, which the company attributed to an unfavorable cycle in the lid industry. Despite this impairment, a significant positive signal emerges from the valuation metrics, as the discount to NAV narrowed considerably from 54% to 49%. This tightening suggests that the market may be re-evaluating the sum-of-the-parts value, focusing more on the strong performance of core assets rather than the isolated write-down, a sentiment supported by the 1.5% share price increase post-announcement.

Key Decisions for Investors

• Investors should assess whether the substantial, albeit narrowing, 49% discount to NAV represents a sufficient margin of safety and a compelling value opportunity, particularly given the demonstrated stability of the NAV and the strong performance of the core Chocolate Division.
• The €10 million impairment on Viventions highlights the idiosyncratic risks within the holding structure; therefore, it is prudent to monitor the performance of other portfolio assets for signs of cyclical weakness that could lead to further write-downs.
• Consider the narrowing discount as a positive momentum signal and watch for potential catalysts, such as strategic asset disposals or a recovery in the lid industry, that could further close the valuation gap.