EXEL Industries: first half 2022-2023 results
May 26 2023 - 2:30AM
EXEL Industries: first half 2022-2023 results
First half 2022–2023
resultsReturn to profit levels in line with
expectations |
H1 results(October 2022–March 2023) |
2021–2022(€m) |
2022–2023(€m) |
SALES |
406.9 |
483.1 |
RECURRING EBITDA1 |
17.4 |
29.0 |
% of sales |
4.3% |
6.0% |
CURRENT OPERATING INCOME (EBIT) |
7.2 |
15.8 |
% of sales |
1.8% |
3.3% |
Non‐recurring items |
(1.9) |
0.1 |
Net financial income/(expense) |
0.3 |
(8.3) |
Tax and share of profit of associates |
(3.6) |
(3.4) |
NET INCOME |
1.9 |
4.2 |
% of sales |
0.5% |
0.9% |
NET FINANCIAL DEBT |
(154.6) |
(176.4) |
Sales6 months(October 2022–March
2023) |
2021–2022 |
2022–2023 |
Change (reported) |
Change
(LFL2) |
Reported |
Reported |
€m |
% |
€m |
% |
|
|
|
|
|
|
|
AGRICULTURAL
SPRAYING |
186.8 |
236.8 |
+50.0 |
+26.7% |
+44.5 |
+23.8% |
SUGAR BEET
HARVESTERS |
39.2 |
53.8 |
+14.6 |
+37.4% |
+15.3 |
+39.0% |
LEISURE |
55.2 |
62.1 |
+6.9 |
+12.5% |
+2.5 |
+4.5% |
INDUSTRY |
125.7 |
130.4 |
+4.7 |
+3.7% |
+3.1 |
+2.5% |
|
|
|
|
|
|
|
EXEL Industries Group |
406.9 |
483.1 |
+76.2 |
+18.7% |
+65.3 |
+16.1% |
SalesFirst half
2022–2023
EXEL Industries posted revenue of €483.1
million for the first half of 2022–2023, up
18.7% as reported and up 16.1% at
constant foreign exchange rates and scope.
Agricultural spraying revenue increased in
Europe and North America, still benefiting from a stable full order
book over the next 6 to 12 months for all Group brands. The Sugar
beet harvesting business posted solid revenue growth driven by
sales of new generation sugar beet harvesters and demand in Eastern
Europe. In the Garden business, after declining in 2022, the market
returned to pre-COVID volumes but continued to be impacted by
adverse weather conditions lasting up until now and inventory
clearance among distributors. Industry volumes remained broadly
stable except in Asia, where they continue to grow.
Results
Reported recurring EBITDA improved
sharply to €29.0 million, or 6.0% of revenue. Several
factors explain this increase:
- The easing of supply chain tension
and the increase in production rates in support of a constantly
well-stocked order book enabled Agricultural spraying to grow
significantly. Ongoing momentum in North America and Asia/Oceania
underpinned the Group’s various activities during the first half.
The various price increases implemented over the past few months
have allowed the Group to preserve the gross margin amid the upward
trend.
- Overheads have
increased due to strong inflation and the gradual resumption of
marketing and communication expenses.
Net income for the first half
of 2022–2023 totaled €4.2 million versus €1.9
million in 2022.
-
Non-recurring income almost broke even at
€0.1 million. Non-recurring items in 2021–2022
included impairment of assets located in the Ukrainian war
zone.
- Net
financial income/(expense) deteriorated sharply to
a €8.3 million net expense due to changes in foreign
exchange gains and losses: currency movements resulted in an
unrealized loss of €6 million, whereas the Group recorded a €2
million gain last year. The loss was exacerbated by the increase in
cost of debt due to interest rate hikes over the past few months,
despite the conversion of part of the debt to fixed rates, and by
the increase in net debt versus the previous year.
Balance sheet
Net financial debt at March 31, 2023 was
€176.4 million, compared to €154.6 million in 2022. This
increase, as expected and in line with seasonal trends, remained
limited however after the high point reached at the end of
September 2022 following the increase in inventories (mainly
work-in-progress) to supply the substantial order book in
Agricultural spraying and Sugar beet harvesting. Nevertheless,
special attention is being paid to managing working capital across
all Group business lines and this item is currently under
control.
Outlook
- AGRICULTURAL
SPRAYING
- The Group continues to adjust its
selling prices in response to rising purchase costs.
- Despite the relative decline in
agricultural product prices, order books remain well-stocked in all
Group regions including Eastern Europe.
- Initial sales of the TRAXX
autonomous high-clearance tractor are progressing in accordance
with our forecasts and testing has begun on the TRAXX Hydrogen
prototype.
- Sales of our 3S Spot Spray Sensor®
precision spraying solution for large-scale crops were in line with
our forecasts. Sales will accelerate over the coming months.
- SUGAR BEET
HARVESTING
- The recent exceptional increase in
sugar prices is expected to bolster new machine sales over the
coming months. There is still a fair amount of arable land, except
in France.
- LEISURE
- The market is impacted by weather
conditions and inventory clearance among distributors. Provided
weather conditions remain favorable, business is expected to return
to volumes comparable to the pre-COVID period.
- INDUSTRY
- Regional trends are expected to
remain the same in the three main markets marked by stabilization
in Europe and North America and sustained growth in Asia.
Yves Belegaud, Chief Executive Officer
of the EXEL Industries Group:
“An encouraging first half benefiting from a
slight easing in supply chains and strong volume growth in
agricultural equipment. The Group also benefits from a solid order
book offering clear visibility over the coming quarters. Managing
working capital remains a priority for the Group’s
development.”
Upcoming events
- May 30,
2023: SFAF presentation of H1 2022–2023 results.
- July 25,
2023, before market opening: Q3 2022–2023 sales.
About EXEL Industries
EXEL Industries is a French family-owned group
that designs, manufactures and markets capital equipment and
providesassociated services that enable its customers to improve
efficiency and productivity or enhance their well-being while
achievingtheir CSR objectives.Driven by an innovation strategy for
70 years, EXEL Industries has based its development on innovative
ideas designed to offercustomers 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 corporateacquisitions, underpinned by a stable
shareholder base guided by a long-term development strategy.EXEL
Industries employs approximately 3,770 permanent employees spread
across 27 countries and five continents. The Groupposted FY
2021-2022 sales of €977 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 BELEGAUDChief Executive Officer |
Thomas GERMAINGroup Chief Financial Officer / Investor
relations |
direction.communication@exel-industries.com |
1Recurring EBITDA = current operating income (EBIT) +
depreciation and amortization of non-current assets + change in
provisions (excluding provisions on current assets) + share of
profit of associates2Like-for-like (LFL) = at constant foreign
exchange rates and scope
- EXEL Industries_Press release_2023-HY_EN
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