This isn’t Funding Recommendation. PLEASE DO YOU OWN RESEARCH !!!
Bois Sauvage is a Belgian Holding Firm that I owned up to now and have written a number of instances about:
2014 Replace on Bois Sauvage and Ackerman
In essence it’s primary enterprise is high-end Belgian Chocolate (Neuhaus, Jeff de Brugges) and a wide range of different belongings, from actual property, listed Belgian shares and a few VC/PE like investments.
What created my renewed curiosity within the inventory was this passage in a latest “Newletter” despatched out by the corporate:
These matters are a part of a broader transformation. For a number of months now, we’ve been conducting an in-depth strategic evaluate of all our holdings. This evaluate will end in concrete bulletins in March 2026. It displays our need to higher focus our efforts on our areas of experience, align our portfolio with our ambition for sustainable development, and improve the readability of our funding profile.
On Bluesky, the person Berkshire Haddaway, who has a deep understanding of the Firm and its historical past speculated the following:
That is clearly a really educated guess. I might additionally welcome a sale of the listed shares, however let’s see what they do. In any case its one thing that was lengthy overdue.
My primary situation with Bois Sauvage was all the time, that though the inventory was low cost and the Chocolate belongings actually fascinating, the remainder was a kind of random mixture of belongings and the technique as such was by no means clear.
What already modified structurally within the final years, and particularly after the demise of founder Man Paquot was that they began to purchase again shares. Which is a good suggestion when the inventory is buying and selling at 50% of NAV.
In response to TIKR, they’ve purchased again greater than 4% and maintain cancelling them on an annual foundation. Nonetheless, this didn’t actually assist with the Low cost to NAV which continues to be at round 50% on the time of the discharge.
That is the NAV calculation from the 2025 half 12 months report. I do suppose that it represents a comparatively honest worth of Bois Sauvage’s NAV:
Greater than half of the worth is the Chocolate Group. One of many greatest drivers for prices and income is the value of Cocoa which has been in regular decline for the reason that starting of the 12 months as this chart exhibits:
Cocoa costs half dropped -50% from the start of the 12 months. I’m not certain if the Chocolate group may need hedged the value a minimum of partially, however there’s clearly tailwind from Cocoa costs after a loopy 18 months or so.
During the last 5 years, the shareholders of Bois Sauvage had endured a comparatively lengthy decline:
The problem is that over that time frame, Intrinsic worth stagnated/declined as properly. If we search for occasion on the NAV calculation from 2022 we will see that not a lot occurred:
The rise in Worth within the Chocolate Group had been negatively compensated by Umicore and Noel Group. They did pay good dividends (~8 EUR per share) however worth creation over the previous few years was clearly not nice.
Umicore, the most important listed inventory had an awesome run till 2022 however did very poorly afterwards:
Funding thesis:
That is clearly a brief time period “particular scenario” funding for me, not a long run compounder. I have no idea what they’ll announce in March, however I believe there’s some probability that it’ll scale back the low cost to NAV.
As well as, I anticipate comparatively good numbers from the Chocolat Group or a minimum of a constructive outlook for 2026 from the associated fee aspect that may be already mirrored within the valuation of the place for the NAV calculation.
However, I do suppose that the draw back is quite restricted, so the chance/return ratio appears fairly good to me for the subsequent 3-6 months.
On a fast and soiled foundation, I might assume there’s a 50% probability for a 30% share value enhance vs. a 50% probability of the inventory doing nothing.
Abstract:
Realizing the corporate over some years, I do suppose that the “introduced announcement” represents an fascinating particular scenario.
I’ve allotted 2% of the portfolio into the inventory at a median share value of 257 EUR.
The time horizon for that is 3 to max. 6 months.
Bonus Monitor: Though nobody has requested for it, right here is after all a bonus observe. After all from the band Sizzling Chocolate. Let’s hope that funding seems to be a horny factor…..
Sizzling Chocolate – You Horny Factor (ZDF Disco, 24.04.1976)
