EXEL Industries: second quarter 2021-2022 sales, up 2.0%
PRESS
RELEASE
April 26,
2022
Second quarter 2021-2022
sales: up 2.0%Growth in all businesses
except Leisure |
Q2 sales(January 2022–March 2022) |
2020 – 2021 |
2021 –2022 |
Change in
value(€m) |
Change(%) |
Reported |
Reported |
Reported |
*Like-for-like |
Reported |
*Like-for-like |
|
AGRICULTURAL
SPRAYING |
119.7 |
122.1 |
+2.4 |
+0.9 |
+1.9% |
+0.8% |
SUGAR BEET
HARVESTERS |
16.8 |
21.5 |
+4.7 |
+4.2 |
+28.2% |
+25.0% |
LEISURE |
46.0 |
38.2 |
-7.8 |
-17.4 |
-17.0% |
-37.8% |
INDUSTRY |
60.2 |
65.7 |
+5.5 |
+4.2 |
+9.3% |
+6.9% |
|
EXEL Industries
Group |
242.7 |
247.5 |
+4.8 |
-8.1 |
+2.0% |
-3.3% |
*Like-for-like = at constant foreign exchange rates and
scope
HY1
sales(October 2021–March 2022) |
2020 – 2021 |
2021 –2022 |
Change in
value(€m) |
Change(%) |
Reported |
Reported |
Reported |
*Like-for-like |
Reported |
*Like-for-like |
|
AGRICULTURAL
SPRAYING |
178.2 |
186.8 |
+8.6 |
+6.0 |
+4.8% |
+3.4% |
SUGAR BEET
HARVESTERS |
33.2 |
39.2 |
+5.9 |
+4.9 |
+17.9% |
+14.9% |
LEISURE |
59.6 |
55.2 |
-4.4 |
-16.5 |
-7.3% |
-27.7% |
INDUSTRY |
114.2 |
125.7 |
+11.5 |
+8.9 |
+10.0% |
+7.8% |
|
EXEL Industries
Group |
385.2 |
406.9 |
+21.6 |
+3.4 |
+5.6% |
+0.9% |
*Like-for-like = at constant foreign exchange rates and
scope
Situation in Ukraine and
Russia
The Group has been closely monitoring the
conflict in Ukraine and has mobilized its teams to welcome
colleagues from the region and their families to western
Europe.
EXEL Industries has two agricultural equipment
subsidiaries in Ukraine: one in agricultural spraying, the other in
sugar beet harvesters. The fall in sales in the second quarter was
limited to €4.5 million compared to 2021. In this uncertain
climate, the Group expects business to recover only slowly in the
short term.
In Russia, the Group is mainly focused on
agricultural equipment. Given the need to minimize future impacts
on food supply, EXEL Industries is maintaining as much of its
activity as possible, in compliance with European rules and
applying special vigilance.
As a reminder, the Group’s sales in Russia,
Belarus and Ukraine made up 4% of 2020–2021 sales.
Second quarter 2021–2022
sales
Sales for the second quarter of the 2021-2022
fiscal year amounted to €247.5 million, up
2.0% compared with the same period of the previous fiscal
year. At constant exchange rates and same scope, (+€3.7 million,
mainly due to the rises of the US dollar and the GBP), Group sales
were down 3.3%. Two factors explain the fall:
first, the introduction of a new ERP software in the gardening
business led to delays in dispatching orders; second, the ongoing
supply chain difficulties particularly in components again
disrupted production this quarter, postponing some deliveries,
notably in agricultural spraying.
The scope effect is the result of two recently
acquired businesses by the Group: the nautical activity was
consolidated from September 30, 2021 and contributed €3 million
this quarter and €5.1 million in the half-year; GF Garden (Italy)
has been consolidated into the garden division since February 15,
2022 and generated €6 million this quarter.
- AGRICULTURAL SPRAYING,
sales of €122.1 million, up €2.4 million
(up 1.9%)
The conflict in Ukraine boosted the prices not
only of agricultural commodities (wheat, corn, rape, etc.) but also
spare parts and components. Sales from agricultural spraying grew
slightly in volumes with different trends seen in different
markets. Europe has remained stable and in Australia the healthy
tendency glimpsed in the first quarter continued. In contrast,
North America was held back by a lack of spare parts and
components. Again this quarter, production at all the Group’s
plants was affected by shortages in supply chains for mechanical,
hydraulic and electronic components resulting in severely late
deliveries.
- SUGAR BEET HARVESTERS,
sales of €21.5 million, a €4.7 million increase
(up 28.2%)
This quarter confirmed the healthy start made in
the first quarter by this business, following on from a year of
strong growth in 2020-2021. Sales of second-hand machines and spare
parts are up, and price increases, as a consequence of the
inflation of the prices of steel and components, were passed in all
product families.
- LEISURE, sales of €38.2
million, down 17%
The acquisitions of the nautical division on
September 30, 2021 (Wauquiez, Rhéa Marine, Tofinou) and of GF
Garden on February 15, 2022, resulted in a scope effect increasing
sales for this activity by €9 million. At constant exchange rates
and same scope, the garden business had a difficult quarter in a
downward European market and was affected by significant delays
caused by migrating the IT systems to SAP. At the same time, the
pricing offer was adapted to compensate for the sharp rises in
costs (logistics, commodities).
- INDUSTRY, sales of €65.7
million, a €5.5 million increase (up
9.3%)
North America and China continue to drive growth
in industrial spraying, in both volume and value terms (automotive
and wood industry). The position is more difficult in Europe and
the economic environment remains uncertain. In technical hoses,
rising costs of commodity led to regular sales price rises,
resulting in increased revenue for this business.
Outlook
Agricultural commodity prices are expected to remain at high
levels, encouraging farmers to renew their machines.
Commercial brands are adjusting their sales prices, to offset
the steel and components costs increases and to try to limit the
impact on margins.
The order book is rising ahead of its 2020-2021 levels, but
supply chain disruptions (components) persist and will continue to
affect productivity and the pace of deliveries.
Some orders are likely to be canceled as a result of the
conflict in Ukraine.
Stabilization of new machine sales expected in the fiscal year,
despite canceled/delayed orders in Ukraine and Russia.
Confirmation that the diversification into the Terra Variant
range can act as a driver of growth into new regions.
Sales of spare parts and used machines remain strong.
The change of ERP software implemented in the second quarter
(migration to SAP) should disturb less the dispatching of orders in
the third quarter, with a gradual recovery in volumes over the
third and fourth quarters. However, in this seasonal business, a
portion of these delays will be difficult to recover.
The new Easy-Mix composter, which has won a string of awards
from different organizations, looks set to grow sales.
After briefly stabilizing, commodity prices are rising-up
again.
The commercial and industrial restructuring of the nautical
activity continues.
The automotive market is difficult in all regions, with
carmakers showing signs of a wait-and-see attitude.
Asia and America should continue to support growth in other
markets.
Yves Belegaud, Chief Executive Officer of the
EXEL Industries Group, said:
“By being able to rely on its diversified
businesses, the Group showed, in the second quarter, its resilience
in an uncertain geopolitical context. Sales were slightly up on the
second quarter 2020-2021, despite an unfavorable basis of
comparison and the disruptions we are currently facing. The order
book nonetheless remains strong, in an uncertain global environment
but with very favorable agricultural commodity prices. EXEL
Industries again showed its pricing power to cope with an even more
inflationary environment.”
Upcoming events
May 31, 2022: 2021-2022 half-year results
July 26, 2022 after market closing: third
quarter 2021-2022 sales
About EXEL Industries
EXEL Industries is a French family-owned group
that designs, manufactures and markets capital equipment and
provides associated services that enable its customers to improve
efficiency and productivity or enhance their well-being while
achieving their CSR objectives.Driven by an innovation strategy for
70 years, EXEL Industries has based its development on innovative
ideas designed to offer customers unique, efficient, competitive
and user-friendly products.Since its inception, the Group has
recorded significant growth in each of its markets through both
organic growth and corporate acquisitions, underpinned by a stable
shareholder base guided by a long-term development strategy.EXEL
Industries employs approximately 3,546 permanent employees spread
across 27 countries and five continents. The Group posted FY
2020-2021 sales of €877 million.
Euronext Paris, SRD Long only – compartment B
(Mid Cap) EnterNext© PEA-PME 150 index (symbol: EXE/ISIN
FR0004527638)Press release available onsite
www.EXEL-industries.com
Yves BELEGAUDGroup Chief Executive
Officeryves.belegaud@EXEL-industries.com |
Thomas GERMAINGroup Chief Financial Officer / Investor relations
direction.communication@EXEL-industries.com |
- EXEL Industries_Press Release_2022-Q2_EN
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