Lacroix : First half 2022 : Solid growth in revenues : +32.8%.
Operating profitability resilient despite a contrasted environment.
Confirmation of annual objectives.
29/09/2022
First half
2022 :
Solid growth in
revenues :
+32.8%
Operating
profitability resilient
despitea
contrasted
environment
Confirmation of annual
objectives
Continued execution of the
LEADERSHIP 2025 strategic
plan
in millions of euros |
H1 2022 |
H1 2021 |
Change |
Revenue |
338.4 |
254.8 |
+32.8% |
Current EBITDA |
19.3 |
14.9 |
+29.7% |
as % of revenue |
5.7% |
5.8% |
-14bp |
Current operating income |
8.3 |
8.6 |
-3.7% |
as % of revenue |
2.4% |
3.4% |
-93bp |
Operating income |
7.3 |
8.2 |
-11.6% |
Financial results |
(3.0) |
(0.1) |
|
Income taxes |
(0.7) |
(1.9) |
|
Consolided net income |
3.5 |
6.2 |
-43.0% |
Net income, Group share |
3.9 |
5.8 |
-32.2% |
Buoyant
half-year activity
In the first half of 2022, LACROIX recorded
revenue of €338.4m, compared with €254.8m in the first half of
2021, a 32.8% growth driven by the integration of Firstronic and
the passing on of additional costs linked to difficulties in the
supply of electronic components. At constant scope, growth was 3.7%
over the period.
Stable
current EBITDA despite a contrasted
environment
Over the period, LACROIX's current EBITDA1 was
€19.3m, compared with €14.9m a year earlier, i.e. current EBITDA
margin was virtually stable at 5.7% of revenue (-14 basis points
compared with the margin for H1 2021).
This change in the Group's profitability
reflects a contrasted situation: on the one hand, strong sales
momentum, particularly in the Electronics and Environment
activities, and the accretive impact of the Firstronic acquisition.
On the other hand, the margin was penalized mainly by the dilutive
effect of additional costs linked to components2, operational
inefficiencies or redesigns linked to supply difficulties, as well
as the initial effects of the inflationary context of energy,
transport and raw material prices, which were not fully passed on
to customers. For these very same reasons, margin on current EBITDA
was slightly down at 5.3% at constant scope.
Electronics
activity
Benefiting from the integration of Firstronic,
the Electronics activity recorded a 47.9% increase in revenue in
the first six months of the year (+3.8% at constant scope) to
€248.2m, compared with €167.8m in the same period of the previous
year, benefiting in particular from the re-invoicing of excess
supply costs.
Despite inflation and component supply
pressures, current EBITDA for the Electronics activity in H1 2022
amounted to €11.9m (vs. €6.9m in H1 2021), an 71 basis point
increase to 4.8% of revenue, notably due to the accretive impact of
Firstronic.
City
activity
Over the period, City activity’s revenue
amounted to €51.4m, compared with €52.6m for the comparable period,
representing a very slight fall of 2.3% - the sluggish activity
recorded in the Signaling and Traffic segments having been
partially offset by strong performance in Public Lighting.
Profitability of the City activity deteriorated
noticeably, penalized by the increase in raw material costs
(particularly aluminum in the Signals Business Unit). Current
EBITDA margin fell by €1.5 million over the half-year, to a loss of
€0.9 million.
Environment
activity
Lastly, driven by all its segments (Water,
Heating Networks and Smart Grids), the Environment activity
recorded half-year revenue of €38.8m, up 12.9% compared with H1
2021.
Activity's profitability fell slightly by 2.1
points to 21.1% (with current EBITDA of €8.2m in H1 2022 compared
with €8.0m a year earlier), with price increases not yet covering
all the additional costs. However, it remains very satisfactory,
and above the 2025 objective (above 20%).
Change
in operating profitability due to non-cash items
For the first half of 2022, LACROIX's current
operating income is €8.3m, a limited decrease of €0.3m compared to
the first half of 2021, representing 2.4% of revenue compared to
3.4% a year earlier - a change that is mainly explained by the
change in current EBITDA as well as the impact of the amortization
over 15 years of the intangible assets recognized at the time of
the acquisition of Firstronic ($2.9m per year).
For the first six months of the year, operating
profit was down by €1.0m, mainly due to non-recurring expenses
related to the move to the new Symbiose plant (€-0.7m).
Financial expenses were €3.0m, compared to €0.1m
for the same period, mainly due to debts incurred for acquisitions
and production investments. The comparable period also benefited
from a €1.0m revaluation of non-consolidated shares.
Overall, the Group's share of net income for the
first half of 2022 was €3.9m, compared with €5.8m for the first
half of 2021.
A solid financial situation
As of June 30, 2022, the Group's shareholders'
equity amounted to €184.6m compared to €180.4m as of December 31,
2021.
Net debt increased to €150.0m at June 30, 2022,
compared to €102.9m at December 31, 2021 (i.e. a gearing of 81.3%
at the end of June 2022 compared to 57.0% at the end of December
2021). This change is mainly due to the change in working capital
requirements and the financing of significantly higher inventory,
in connection with the component supply situation (building up of
strategic reserves of components and slowing down of inventory
turnover due to temporary shortages of components to complete
production). During the period, the company also bought out
minority interests in the Environment business in Germany.
Leadership 2025 :
major advances
Within the framework of the Leadership 2025
strategic plan, focused in particular on international expansion
and technological and industrial leadership, LACROIX continues to
move forward, confirmed in its execution and all of its objectives
with, in particular, the aim to reach, by 2025, €800m in sales with
a current EBITDA margin of around 9%.
More particularly, the first half of 2022 was
marked in particular by the process of integrating Firstronic in
the United States, acquired at the very end of 2021, a major step
in the international deployment of LACROIX. It is proceeding in
line with the Group's expectations, which should result in
purchasing synergies of up to $1m as of 2022 (target of $5m to $7m
by 2025) and commercial synergies with program gains of up to $30m
in revenue (target $50m by 2025).
In this context and in order to consolidate and
accelerate its strategic advances, LACROIX has also recently
announced the reinforcement of its management line, with the
appointment of a manager in charge of successfully integrating
Firstronic and the deployment of all the Group's activities in
North America, the appointment of a new manager in charge of
continuing the execution of the strategic plan of the Electronics
activity in the EMEA zone in terms of customer satisfaction and
operational performance, and the arrival of a new General Manager
of the LACROIX Design Center.
Finally, in direct connection with its Industry
4.0 strategic axis, LACROIX inaugurated its new Symbiose factory on
8 September. Symbiose is a true symbol of French industrial
revival, and reflects the Group's determination to gain in
competitiveness, and the adoption of a proactive approach to
relocate and develop local know-how within the strategic national
electronics sector, while keeping CSR at the heart of the
project.
Annual
objectives confirmed
The second half of the year began in a more
demanding environment, marked by persistent pressure on components
and cost increases, which will continue to weigh on operating
profitability.
Nevertheless, LACROIX is confident in its
ability to deliver all of the 2022 financial objectives set in
March: growth of more than 30% in revenue and at a minimum,
stability of the current EBITDA margin. These objectives translate
into revenue of more than €650m, to which should be added the
impact of the rise in the dollar, estimated at between €10m and
€15m, and a current EBITDA margin equal or greater than 6.2%.
Driven by a still strong demand for its
solutions in all its activities, LACROIX should thus continue to
benefit from a sustained rate of order intake. The Group will also
benefit from favourable seasonality, from the continued passing on
of cost increases to customers and from the ramping up of its new
Symbiose electronics plant following the move.
The Group is thus reaffirming its confidence and
ability to weather current economic headwinds without jeopardizing
the long-term performance trajectory demonstrated in recent
years.
Upcoming
eventsQ3 2022 revenue: November 7, 2022 after the
close of tradingTech Day: November 24, 2022
Visit our investor relations
page to find
financial information
https://www.lacroix-group.com/investors/
About
LACROIX
Convinced that technology should contribute to
making our living environments simpler, more sustainable and safer,
LACROIX supports its customers in the construction and management
of intelligent living ecosystems, thanks to connected equipment and
technologies.
As a publicly-listed family-owned mid-cap,
LACROIX combines the essential agility required to innovate in an
everchanging technological sector with the ability to industrialize
robust and secure equipment, cutting-edge know-how in industrial
IoT solutions and electronic equipment for critical applications
and the long-term vision to invest and build for the future.
LACROIX designs and manufactures electronic
equipment, in particular in the automotive, home automation,
aeronautical, industrial and health sectors. LACROIX also provides
safe, connected equipment for the management of critical
infrastructure such as smart roads (street lighting, traffic signs,
traffic management, V2X) and the management and operation of water
and energy systems.
Drawing on its extensive experience and
expertise, the Group works with its customers and partners to build
the connection between the world of today and the world of
tomorrow. It helps them to create the industry of the future and to
make the most of the opportunities for innovation that surround
them, supplying them with the equipment for a smarter world.
1 Recurring EBITDA is an alternative performance
indicator. It is defined as current operating income adjusted for
depreciation and amortization of property, plant and equipment,
intangible assets and rights of use, and for share-based
compensation expenses (IFRS 2) and/or the achievement of
post-integration objectives of newly acquired entities.2 Revenue
related to additional costs linked to components being passed on to
customers carries zero margin, hence its dilutive impact on the
Group’s overall margin.
Contacts
LACROIX Deputy CEO &
Executive VP Finance Nicolas Bedouin
info@lacroix-group.com Tel: +33 (0)2 72 25 68 80 |
ACTIFIN
Media Relations Jennifer Jullia jjullia@actifin.fr
Tel : +33 (0)1 56 88 11 19 |
ACTIFIN
Financial communication Simon Derbanne
sderbanne@actifin.fr Tel : +33 (0)1 56 88 11 14 |
- LACROIX_PR_Results S1 20220929_EN_VDEF
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