FY 2023: HYPER GROWTH AND PROFITABILITY
CONSOLIDATED REVENUE: +50.7%
ADJUSTED EBITDA1: 23.2% OF REVENUE
STRENGTHENED FINANCIAL FUNDAMENTALS WITH A STRONG BALANCE
SHEET
CONFIRMATION OF THE 4G PLAN'S AMBITION
- 50.7% revenue growth in FY 2023
- Adjusted EBITDA1 for FY 2023 to EUR 3,263 thousand (23.2% of
revenue)
- Operating profit of EUR 2,477 thousand for FY 2023 (17.6% of
revenue)
- Net profit of EUR 2,140 thousand for FY 2023 (15.2% of
revenue)
- Increased available cash from EUR 5 456 thousand to EUR
6,237 thousand as of December 31, 2023
- Net available cash (excluding lease liabilities) of EUR
6,109 thousand as of December 31, 2023
- A year that secures the trajectory of the 4G Plan and
strengthens the overall assets of the Group
- Shareholders and investors video conference - Thursday,
March 28, 2024 at 11:00 a.m.
Regulatory News:
MEMSCAP (Euronext Paris: MEMS), leading provider of
high-accuracy, high-stability pressure sensor solutions for the
aerospace and medical markets using MEMS technology (Micro Electro
Mechanical Systems), today announced its earnings for the 2023
financial year ending December 31, 2023.
Analysis of the consolidated income statement
In line with the previous quarterly press releases, MEMSCAP
reported an audited revenue of EUR 14,073 thousand for FY 2023
compared to EUR 9,336 thousand for FY 2022, thus a growth of 50.7%
for FY 2023.
Consolidated revenue distribution by market segment, over FY
2023 and presented in accordance with IFRS 5, is as follows:
Market segments / Revenue (In
thousands of euros)
2022
2022 (%)
2023
2023 (%)
Aerospace
6,729
72%
8,801
63%
Medical
2,480
27%
3,589
26%
Optical communications
--
--
1,555
11%
Others (Royalties from licensed
trademarks)
128
1%
128
1%
Total revenue from continuing
operations
9,336
100%
14,073
100%
(Any apparent discrepancies in totals are due to rounding.)
Revenue from continuing operations for FY 2023 increased by
+50.7% in euros and by +54.7% in US dollars compared to FY 2022.
Sales made in US dollars represented approximately 62% of
consolidated revenue from continuing operations in FY 2023.
Aerospace sales amounted to EUR 8,801 thousand (+EUR 2,072
thousand / +30.8% vs. FY 2022) and confirmed the strong recovery of
this business in the wake of FY 2021 and following the weakening
impacts of the Covid-19 pandemic. The Aerospace business represents
62.5% of consolidated revenue from continuing operations (FY 2022:
72.1%) and remains the Group's leading market segment. Medical
sales amounted to EUR 3,589 thousand and also demonstrated high
levels of activity, showing an increase of EUR 1,109 thousand
compared to FY 2022 (+44.7% vs 2022).
The optical communications division, whose commercial activities
started in January 2023 following the implementation of a fabless
organization, recorded a revenue of EUR 1,555 thousand for FY
2023.
Royalties from licensed trademarks, including the Ioma brand,
contributed to a revenue of EUR 128 thousand, consistent with the
previous financial year.
Analysis of the consolidated income statement
MEMSCAP’s consolidated earnings for FY 2023, and presented in
accordance with IFRS 5, are given within the following table:
In thousands of euros
2022
2023
Revenue from continuing
operations
9,336
14,073
Cost of revenue
(5,659)
(8,033)
Gross margin
3,677
6,040
% of revenue
39.4%
42.9%
Operating expenses*
(3,441)
(3,563)
Operating profit /
(loss)
236
2,477
Financial profit / (loss)
7
(304)
Income tax expense
(92)
(33)
Net profit / (loss) from
continuing operations
151
2,140
Profit / (loss) after tax from
discontinued operations
897
--
Net profit / (loss)
1,048
2,140
(Financial data were subject to an audit by the Group’s
statutory auditors who will issue their reports at a later date. On
March 27th, 2024, the MEMSCAP’s board of directors authorized the
release of the FY 2023 consolidated financial statements. Any
apparent discrepancies in totals are due to rounding.) * Net of
research & development grants.
The significant increase in sales volumes, as well as the
product mix effect, impacted the Group's gross margin rate, which
stood at 42.9% compared to 39.4% in the previous year. The
consolidated gross margin thus amounted to EUR 6,040 thousand
compared to EUR 3,677 thousand for FY 2022.
Operating expenses, net of research and development grants,
amounted to EUR 3,563 thousand compared to EUR 3,441 million for FY
2022. Net of research and development grants, the amount of
research and development expenses was EUR 1,402 thousand for FY
2023, compared to EUR 1,510 thousand for the previous year, and
included the development of new generations of avionics products.
Net research and development expenses, including grants, thus
represented 10.0% of the consolidated revenue (2022: 16.2%). As
part of the Group's business growth, sales and administrative
expenses increased by +18.7% and +8.0%, respectively, for FY 2023
compared to FY 2022.
The average full-time equivalent workforce of the Group related
to continuing operations increased from 41.3 employees in FY 2022
to 54.5 employees in FY 2023, representing a growth of +31.9%.
For FY 2023, the Group posted an operating profit from
continuing operations of EUR 2,477 thousand (17.6% of revenue)
compared to an operating profit of EUR 236 thousand for FY 2022.
The net financial loss of EUR 304 thousand for FY 2023 (2022:
Non-significant net financial gain), included notably a foreign
exchange loss of EUR 234 thousand (2022: Foreign exchange gain of
EUR 138 thousand). The tax expense recognized over FY 2023 and FY
2022 corresponded to the variation in deferred tax assets. This tax
expense had no impact on the Group's cash position.
The Group therefore reported a net profit after tax from
continuing operations of EUR 2,140 thousand (15.2% of revenue) for
FY 2023 compared to a net profit of EUR 151 thousand for FY
2022.
Including the profit of continuing and discontinued operations,
the Group reported a net profit of EUR 2,140 thousand (15.2% of
revenue) for FY 2023 compared to a net profit of EUR 1,048 thousand
for FY 2022. It is recalled that the net profit for FY 2022
included the exceptional capital gain of EUR 1,754 thousand
resulting from the sale of assets dedicated to the foundry activity
(Custom Products – Discontinued operations in FY 2022) held by the
Group's US subsidiary.
Evolution of the Group’s cash / Consolidated shareholders’
equity
The adjusted EBITDA1 for continuing operations in FY 2023
amounted to EUR 3,263 thousand (23.2% of revenue) compared to EUR
1,443 thousand for FY 2022. It is noted that research and
development costs were fully recognized as expenses and were not
capitalized in the Group's balance sheet over FY 2023.
As of December 31, 2023, the Group posted available cash of EUR
6,237 thousand (December 31, 2022: EUR 5,456 thousand) including
cash investments (Corporate bonds / investment securities) recorded
under non-current financial assets. In a context of very strong
business growth and increased production, MEMSCAP generated a
positive cash flow from continuing operational activities of EUR
1,752 thousand compared to EUR 1,411 thousand in FY 2022.
As of December 31, 2023, the amount of debts and financial
borrowings (excluding lease liabilities) stood at EUR 128 thousand,
and net available cash (excluding lease liabilities) amounts to EUR
6,109 thousand.
As of December 31, 2023, MEMSCAP shareholders’ equity totalled
EUR 17,676 thousand (December 31, 2022: EUR 15,587 thousand).
1 Adjusted EBITDA means operating profit before depreciation,
amortisation, and share-based payment charge (IFRS 2) and including
foreign exchange gains/losses related to ordinary activities.
Perspectives
The financial year 2023 initiates MEMSCAP's trajectory towards
its ambition expressed in the 4G Plan 2026. The Aerospace / Medical
segment remains the main driver both in terms of growth and
profitability. The optical communications, while remaining a
profitability support factor for the Group, continue to display
significant volatility due to the Asian context and investments
dedicated to optical fiber.
“Growth and profitability in financial year 2023 reinforce our
initial ambition outlined in the 4G Plan 2026. Regarding our
aerospace activities, MEMSCAP teams are currently focused on
providing industrial and commercial solutions for the engine
control market and winning an increasing number of innovative
programs to prepare the post-2026 period.” said Jean Michel Karam,
President and CEO of MEMSCAP. “In the medical sector, we are
expanding the use of our sensors for a variety of applications.
MEMSCAP's high profitability, strong balance sheet, together with
our expertise combined with solid entry barriers resulting of years
of development, now allow us to select our partners and target
markets and refine a sustainable high-margin model that is not
subject to price erosion. Regardless of the intrinsic volatility of
the optical communications market, our growth engines in Aerospace
and Medical support the trajectory of the 4G plan and its landing
in 2026.”
Shareholders and investors video conference - Thursday, March
28, 2024 at 11:00 a.m. Thank you for registering and sending
your questions in advance using the following link: Registration
for the video conference
Q1 2024 earnings: April 29, 2024
Annual meeting of shareholders: May 31, 2024
About MEMSCAP
MEMSCAP is a leading provider MEMS based
pressure sensors, best-in-class in term of precision and stability
(very low drift) for two market segments: aerospace and
medical.
MEMSCAP also provides variable optical
attenuators (VOA) for the optical communications market.
For more information, visit our website at:
www.memscap.com
MEMSCAP is listed on Euronext Paris (Euronext
Paris - Memscap - ISIN code: FR0010298620 - Ticker symbol:
MEMS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION at 31
December 2023
31 December 2023
31 December 2022
€000
€000
Assets
Non-current assets
Property, plant and
equipment..................................................................
937
901
Goodwill and intangible
assets...................................................................
6 682
6 888
Right-of-use
assets....................................................................................
5 354
4 764
Other non-current financial
assets.............................................................
1 436
1 276
Employee benefit net
asset........................................................................
1
6
Deferred tax
asset.....................................................................................
106
137
14 516
13 972
Current assets
Inventories................................................................................................
4 054
2 578
Trade and other
receivables......................................................................
2 714
2 494
Prepayments.............................................................................................
197
222
Cash and short-term
deposits....................................................................
4 801
4 180
11 766
9 474
Total assets
26 282
23 446
Equity and liabilities
Equity
Issued
capital............................................................................................
1 869
1 869
Share
premium..........................................................................................
17 972
17 972
Treasury
shares.........................................................................................
(134)
(144)
Retained
earnings......................................................................................
1 095
(242)
Foreign currency
translation......................................................................
(3 126)
(3 868)
17 676
15 587
Non-current liabilities
Lease
liabilities..........................................................................................
4 646
4 479
Interest-bearing loans and
borrowings.......................................................
26
128
Employee benefit
liability..........................................................................
80
69
4 752
4 676
Current liabilities
Trade and other
payables..........................................................................
2 780
2 487
Lease
liabilities..........................................................................................
937
576
Interest-bearing loans and
borrowings.......................................................
102
101
Provisions..................................................................................................
35
19
3 854
3 183
Total liabilities
8 606
7 859
Total equity and liabilities
26 282
23 446
CONSOLIDATED STATEMENT OF INCOME
For the year ended 31 December 2023
2023
2022
Continuing operations
€000
€000
Sales of goods and
services.................................................................................
14 073
9 336
Revenue............................................................................................................
14 073
9 336
Cost of
sales.......................................................................................................
(8 033)
(5 659)
Gross
profit.......................................................................................................
6 040
3 677
Other
income.....................................................................................................
142
402
Research and development
expenses.................................................................
(1 548)
(1 912)
Selling and distribution
costs..............................................................................
(801)
(675)
Administrative
expenses.....................................................................................
(1 356)
(1 256)
Operating profit /
(loss).....................................................................................
2 477
236
Finance
costs.....................................................................................................
(380)
(141)
Finance
income..................................................................................................
76
148
Profit / (loss) for the year from
continuing operations before tax......................
2 173
243
Income tax
expense...........................................................................................
(33)
(92)
Profit / (loss) for the year from
continuing
operations.......................................
2 140
151
Discontinued operations
Profit/(loss) after tax for the year from
discontinued operations.........................
--
897
Profit / (loss) for the
year..................................................................................
2 140
1 048
Earnings per share:
- Basic, for profit / (loss) for the year
attributable to ordinary equity holders of the parent (in
euros)....................................................................................
€ 0.286
€ 0.140
- Diluted, for profit / (loss) for the
year attributable to ordinary equity holders of the parent (in
euros)................................................................................
€ 0.278
€ 0.140
- Basic, profit / (loss) for the year from
continuing operations attributable to ordinary equity holders of
the parent (in euros)....................................
€ 0.286
€ 0.020
- Diluted, profit / (loss) for the year
from continuing operations attributable to ordinary equity holders
of the parent (in euros)....................................
€ 0.278
€ 0.020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2023
2023
2022
€000
€000
Profit / (loss) for the
year...........................................................................................
2 140
1 048
Items that will not be reclassified
subsequently to profit or loss
Actuarial gains /
(losses)..............................................................................................
(30)
(25)
Elimination of intra-group restructuring
operations
(1)..................................................
(1 195)
(25)
Income tax on items that will not be
reclassified to profit or
loss..................................
--
--
Total items that will not be
reclassified to profit or
loss..............................................
(1 225)
(25)
Items that may be reclassified
subsequently to profit or loss
Net gain / (loss) on available-for-sale
financial
assets...................................................
108
(135)
Exchange differences on translation of
foreign operations...........................................
742
(1 089)
Income tax on items that may be
reclassified to profit or
loss.......................................
--
--
Total items that may be reclassified to
profit or
loss...................................................
850
(1 224)
Other comprehensive income for the
year, net of
tax.................................................
(375)
(1 249)
Total comprehensive income for the
year, net of
tax..................................................
1 765
(201)
(1) The transfer of the “Optical Communications” activities from
the US subsidiary Memscap Inc. to its parent company Memscap S.A.,
finalized in the second half of 2023, is similar to a restructuring
operation exclusively internal to the Group, the effects of which
have been eliminated in consolidation. Consequently, this operation
has no impact on the consolidated income statement for the
financial year, on the asset and debt items of the consolidated
balance sheet as well as on the total amount of shareholders'
equity for the 2023 financial year.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
(In thousands of euros, except for
number of shares)
Number
Issued
Share
Treasury
Retained
Foreign
Total
of shares
capital
premium
shares
earnings
currency translation
shareholders’ equity
€000
€000
€000
€000
€000
€000
At 1 January
2022............................................................................
7 476 902
1 869
17 972
(144)
(1 130)
(2 779)
15 788
Profit for the
year.............................................................................
--
--
--
--
1 048
--
1 048
Other comprehensive income for the year,
net of tax........................
--
--
--
--
(160)
(1 089)
(1 249)
Total comprehensive
income............................................................
--
--
--
--
888
(1 089)
(201)
Treasury
shares................................................................................
--
--
--
--
--
--
--
At 31 December
2022.......................................................................
7 476 902
1 869
17 972
(144)
(242)
(3 868)
15 587
At 1 January
2023............................................................................
7 476 902
1 869
17 972
(144)
(242)
(3 868)
15 587
Profit for the
year.............................................................................
--
--
--
--
2 140
--
2 140
Other comprehensive income for the year,
net of tax........................
--
--
--
--
(1 117)
742
(375)
Total comprehensive
income............................................................
--
--
--
--
1 023
742
1 765
Treasury
shares................................................................................
--
--
--
10
--
--
10
Share-based
payments.....................................................................
--
--
--
--
314
--
314
At 31 December
2023.......................................................................
7 476 902
1 869
17 972
(134)
1 095
(3 126)
17 676
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2023
2023
2022
€000
€000
Operating activities:
Net profit / (loss) for the
year.................................................................................
2 140
1 048
Profit/(loss) after tax for the year from
discontinued operations..............................
--
897
Profit / (loss) for the year from
continuing
operations.............................................
2 140
151
Non-cash items written back:
Amortization and
depreciation..........................................................................
721
1 065
Loss / (capital gain) on disposal of fixed
assets...................................................
17
35
Other non-financial
activities............................................................................
410
120
Accounts
receivable................................................................................................
(328)
(51)
Inventories.............................................................................................................
(1 598)
(577)
Other
debtors.........................................................................................................
120
250
Accounts
payable....................................................................................................
(163)
341
Other
liabilities.......................................................................................................
433
77
Net cash flows from operating
activities - continuing
operations...........................
1 752
1 411
Net cash flows used in operating
activities - discontinued operations......................
--
(1 311)
Total net cash flows from operating
activities........................................................
1 752
100
Investing activities:
Purchase of fixed
assets..........................................................................................
(346)
(261)
Proceeds from sale / (purchase) of other
non-current financial assets......................
(145)
(84)
Net cash flows used in investing
activities - continuing operations.........................
(491)
(345)
Net cash flows from investing activities -
discontinued operations...........................
--
1 694
Total net cash flows from / (used in)
investing
activities........................................
(491)
1 349
Financing activities:
Repayment of
borrowings.......................................................................................
(101)
(120)
Payment of principal portion of lease
liabilities........................................................
(502)
(586)
Sale / (purchase) of treasury
shares........................................................................
10
--
Net cash flows used in financing
activities - continuing operations.........................
(593)
(706)
Net cash flows used in financing
activities - discontinued operations.......................
--
--
Total net cash flows used in financing
activities.....................................................
(593)
(706)
Net foreign exchange
difference.............................................................................
(47)
(211)
Increase / (decrease) in net cash and
cash equivalents...........................................
621
532
Opening cash and cash equivalents
balance...........................................................
4 180
3 648
Closing cash and cash equivalents
balance.............................................................
4 801
4 180
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240327725245/en/
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
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