ICAPE GROUP announces its 2023 half-year revenue AND GROSS MARGIN
26 Juli 2023 - 5:45PM
Business Wire
- Revenue of €94.1 million in the first half of 2023, impacted
by an adverse industrial context
- Gross margin improved to €24.2 million, representing 25.7%
of revenue, because of changes in the product mix and improved
operating efficiency
- Consolidating cash position for future acquisitions
- Continued post-integration synergies from
acquisitions
- Reaffirmation of 2024 and 2026 objectives
Regulatory News:
ICAPE Group (ISIN code: FR001400A3Q3 - Ticker: ALICA)
(Paris:ALICA), a global technology distributor of printed circuit
boards ("PCB"), today announced its 2023 half-year revenue and
gross margin.
Yann Duigou, ICAPE Group’s CEO, stated: "The first six
months of 2023 once again provided an opportunity to demonstrate
the resilience of our business model in an adverse economic
climate, as evidenced by the deterioration in industrial production
indexes and leading us to revise our organic growth objective for
this year. In fact, we were able to continue improving our gross
margin, a remarkable performance given the economic conditions
experienced by the sector which fully illustrates the relevance of
the Group's strategy, based on a high value-added proposition and
tangible synergies thanks to an offensive acquisition policy. The
integration of the acquisitions made over the past two years is
progressing well, and the resulting synergies are gradually coming
on stream, with the potential to generate additional profitable
revenue in the short to medium term. These various factors, coupled
with a consolidating cash position, enable us to reaffirm all our
objectives for 2024 and 2026.”
2023 half-year financial information
In €m (IFRS standards)
H1 2022 published
H1 2022 restated1
H1 20231
Var. restated1
Revenue
110.2
106.5
94.1
-11.7%
COGS
-87.4
-85.3
-69.9
-18.0%
Gross Margin
22.8
21.3
24.2
+13.6%
% revenue
20.7%
20.0%
25.7%
+5.7 pts
In the first half of 2023, Group revenue came to €94.1million,
down 11.7% compared with the first half of 2022, restated for the
disposal of the DIVSYS business in the United States and the
Russian subsidiary. As explained at the time of publication of 2023
first quarter revenue, the adverse economic environment, marked by
multiple exogenous factors (in particular, rising interest rates,
persistent inflation, prolongation of the war in Ukraine and the
components crisis), explains this level of activity.
The evolution of the product mix, including a greater proportion
of higher-margin, smaller-volume orders, coupled with enhanced
operating efficiency resulting from the acquisitions achieved,
supported the fall in cost of goods sold to €69.9 million over the
period, compared with €85.3 million in the first half of 2022. This
strategy enabled the Group to improve its gross margin by +13.6%
over the period, adjusted for the DIVSYS assets in the United
States and the Group's Russian subsidiary currently being sold, to
€24.2 million in 2023 first half-year, representing 25.7% of
revenue.
Consolidating the Group's cash position for future
acquisitions
At the end of June 2023, the Group received unanimous agreement
from its banking syndicate to release a further €13 million in
financing. With the consolidating of its cash position, the Group,
which intends to pursue its external growth strategy, has already
entered into advanced discussions with several international
targets meeting the following criteria:
- moderate size;
- a large portfolio of local customers;
- a gross margin higher than 25% while remaining profitable;
- strong potential for commercial synergies with the Group.
Reaffirmation of 2024 and 2026 objectives
The current unfavourable environment, characterized by
persistently high inventory levels among all industry players as
well as numerous macro-economic trends impacting the PCB
distribution sector, requires the Group to update its 2023 organic
growth objective. ICAPE Group will therefore be unable to achieve
organic growth in 2023 (vs. over 10% for 2023 and 2024 as
communicated within the framework of the IPO), while remaining
confident in its external growth objective for 2023 of an
additional €30 million in revenue.
In addition, the Group's strategy of capitalizing on a more
favorable product mix and greater operating efficiency thanks to
the acquisitions concluded over the past two years should generate
a greater-than-expected improvement in gross sales margin. With its
track-record of acquisitions and a continuing strong pipeline of
targets for 2023 and beyond, ICAPE Group therefore expects to
record a gross sales margin in 2023 of around 25.0%.
The Company also reaffirms all its other objectives announced
for 2024 and 2026 as set out in its registration document,
namely:
- revenue of around €500 million by 2026;
- more than 10% organic growth in 2024 and between 8 and 10%
organic growth per year in 2025 and 2026;
- around €30 million of additional revenue per year through
external growth in 2023 and 2024;
- around €20 million of additional revenue per year through
external growth in 2025 and 2026;
- a gross margin of around 23.5% in 2024 and around 24.0% in
2026;
- an EBIT margin of around 8% in 2024 and around 9.5% in
2026.
Next financial release
- 2023 Half-Year Results, on Wednesday, September 27,
2023, before market opening
About ICAPE Group
Founded in 1999, ICAPE Group acts as a key technological expert
in the PCB supply chain. With a global network of 35 subsidiaries
and a major presence in China, where most of the world’s PCB
production is done, the Group is a one-stop-shop provider for the
products and services which are essentials for customers. As of
December 31, 2022, ICAPE Group recorded a consolidated revenue of
nearly €220 million.
For more information: icape-group.com
1 Including IFRS restatements related to the disposal of the
Russian subsidiary and DIVSYS US
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version on businesswire.com: https://www.businesswire.com/news/home/20230726691008/en/
ICAPE Group CFO Arnaud Le Coguic Tel: +33 1 58 18
39 10 investor@icape.fr
Investor Relations NewCap Nicolas Fossiez
Louis-Victor Delouvrier Tel: +33 1 44 71 94 98 icape@newcap.eu
Media relations NewCap Arthur Rouillé Antoine
Pacquier Tel: +33 01 44 71 94 94 icape@newcap.eu
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