While you might think that tying yourself to consumer
staples like laundry detergent, mouthwash, beer, and wine would insulate
your business from volatility, that’s never really been the case for Multi-Color (LABL), and once again the company came up short of putting together a multi-quarter run of better-than-expected performance.
Organic
growth improved in the first quarter of fiscal 2019, but growth is
going to slow as the company sees the impact of weaker trends in its
beverage label business, putting even more pressure on management to
deliver on cost/efficiency synergies from the Constantia deal.
Management does seem a little more focused on driving growth from its
existing operations, and the shares do look undervalued if management
can push FCF margins into the high single-digits, but business mix is
going to remain a challenge for the foreseeable future.
Click here for more:
A Modest Step Back For Multi-Color
No comments:
Post a Comment