Moody’s moves Esselunga view to negative

Moody's Investors Service said it revised its outlook for Esselunga SpA to negative from stable and affirmed the Ba1 ratings on the company and its €1 billion of senior unsecured bonds.

“The change in outlook to negative reflects the sharp decrease in Esselunga's EBITDA to €214 million in the first half of 2022 (H1 2022) compared to €427.1 million H1 2021, and the risk that Esselunga's profitability and free cash flows generation will remain depressed over the next 12-18 months. The company's sharp decrease in profitability resulted from price investment in the first half of 2022, coupled with growing cost inflation,” Moody’s said in a press release.

Additionally, the agency noted the weaker outlook also mirrors an increasingly difficult economic situation with inflation hurting consumer spending coupled with rising energy costs and higher wages in Italy.

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