Winfarm : First-Half 2021 Results.
PRESS RELEASE Loudéac, 13 October
2021
FIRST-HALF 2021 RESULTS
Solid sales growth
Improving the profitability of Farming
Supplies
Structuring the Group to embark on a new
phase of growth
WINFARM (ISIN: FR0014000P11 - ticker:
ALWF), No. 1 French distance-seller for the farming
industry, announced its consolidated results today for the
first half of 2021.
On 13 October 2021, the Board of Directors
approved the consolidated financial statements for the financial
year ended 30 June 2021. These financial statements have been
subject to a limited review by the statutory auditors, and the
certification reports are currently being prepared.
WINFARM recalls that
the Group has sponsored a professional cycling team under a 3-year
contract. In 2020, WINFARM reported on adjusted EBITDA, restated
for these costs, for the purpose of presenting the Group’s economic
performance without taking these specific expenses into account.
From 2021, the sponsorship agreement will become a partnership
agreement (€400k/year). The Group has decided to return to an
EBITDA without restatement for the sake of readability of its
financial statements from now on to ensure comparability with
respect to the EBITDA target it has set for 2025.
Consolidated data, French accounting standards, Limited review, in
€k |
H1 2021 |
H1 2020 |
Revenue |
51 996 |
49 402 |
Sponsorship and image rights expenses1 |
(200) |
(1 483) |
EBITDA |
2 221 |
1 018 |
EBTIDA margin |
4.3% |
2.1% |
Depreciation, amortisation and provisions |
(1 318) |
(1 052) |
Operating income/loss |
1 023 |
50 |
Financial income/loss |
(91) |
(42) |
Non-recurring profit (loss) |
92 |
188 |
Corporate tax |
(461) |
(190) |
Share of net profits of entities accounted for by the equity
method |
60 |
191 |
Net income (Group share) |
660 |
111 |
GROWTH IN SALES IN HISTORICAL ACTIVITY,
ACCELERATION IN GROWTH DRIVERS
In millions of euros, Limited review |
H1 2021 |
H1 2020 |
Change |
Farming Supplies |
46.5 |
42.8 |
+9% |
Farming Nutrition |
4.8 |
6,0 |
-20% |
Other |
0.7 |
0.6 |
+15% |
Total |
52.0 |
49.4 |
+5% |
FARMING SUPPLIESAcceleration in
the high-potential horse and landscape markets (+41% and +85%,
respectively)
The Farming Supplies business (89% of H1 2021
revenue), under the Vital Concept brand, recorded sales growth of
+8.7% year-on-year.
WINFARM benefited from the impacts of its
diversification in the horse and landscape markets, where sales
continued to gather pace over the first six months of the year,
generating growth of +40.6% and +84.6%, respectively. These
performances are all the more noteworthy for coming on the heels of
sharp respective gains of +23% and +42% in 2019, and +33% and +88%
in 2020, underscoring the impressive potential of these markets to
contribute to the Group’s future growth.
The Group also benefited from strong growth in
the Farm Gates segment, single-handedly accounting for more than
one-third of total H1 2021 revenue growth.
Drawing on its well-established reputation,
Vital Concept has become a key brand and a leading partner in these
two markets.
The Group is also expanding in its historical
scope of operations, aided by successful diversification in
high-demand categories such as the Tubular range in livestock
equipment, wear parts with the development of the STEROK brand, and
the Clothing & Footwear range.
FARMING NUTRITIONFarming
Nutrition: Change of Management and cyclical downturn in exports
due to the health crisis
At the beginning of the year, the Group’s
Management decided to review the Operational Management of Farming
Nutrition, under the Alphatech brand, to enable it to be able to
follow the strategic roadmap. In addition, business was temporarily
penalised due to the temporary impacts of the rise in bird flu
cases in Southeast Asian countries combined with the conditions
brought on by the COVID-19 health crisis, which continued to
adversely affect export trade given that Alphatech earns more than
50% of its revenue outside France.
IMPROVEMENT IN PROFITABILITY CARRIED BY THE
FARMING SUPPLIES DIVISION
The Group’s gross margin grew faster than business
growth. Up +8% to €17.1m, it now accounts for 32.8% of revenue vs.
32.1% in H1 2020. Against a backdrop of generalised increases in
commodities prices, this control of the gross margin illustrates
the Group’s ability to effectively pass on purchase price
increases.
The increase in business and the continuation of
work to optimise logistics flows as well as the reduction in the
use of subcontracting continued to favour the increase in EBITDA
for the farming supplies division, which amounted to €2.2 million,
representing 6.1% of revenue compared with 4.2% in H1 2020.
In the Farming Nutrition division, EBITDA
increased to €0.6m compared to €0.2m in H1 2020, benefiting from
the increase in gross margin, which helped limit the impact of the
drop-in activity in the division due to the decline in export
sales.
Overall, consolidated EBITDA amounted to €2.2m
compared to €1.0m in H1 2020, representing an EBITDA margin of 4.3%
of revenue compared with 2.1% in H1 2020. After reintegrating
sponsorship and image rights expenses, the adjusted EBITDA rate was
4.5% vs. 5.1% in H1 2020.
After taking into account depreciation,
amortisation and provisions for €1.3m, operating income amounted to
€1.0m compared to €0.1m in H1 2020.
Net profit, Group share, amounted to €0.7m vs.
€0.1m in H1 2020
A SOLID FINANCIAL STRUCTURE
As at 30 June 2021, the company posted equity of
€22.9m for financial debt of €18.6m (including amounts due to
credit institutions, financial liabilities on financial leases,
current bank loans and contributions to current accounts), down
€5.5m compared to H1 2020. Cash was €16.2m, including the proceeds
from the exercise of the overallotment option related to the
fundraising carried out in December 2020 as part of the company’s
IPO.
2021 OUTLOOK Heading for a new
phase of growth
In the second half of 2021, the Group is
confident that the strong sales momentum will continue. WINFARM
will benefit in particular from the acquisition of BTN Haas last
July, an important new step in its European conquest strategy, by
establishing itself as a major player in the Netherlands, one of
the most important markets in the field of agriculture and
livestock in Europe, and establishing itself as a major
international player.
The next objectives will be focused primarily on
the success of the integration, with the aim of extending the scope
of BTN de Haas to the farming nutrition market, offering
significant potential for development.
The Group will also capitalise on the
strengthening of Alphatech’s managerial structure, whose mission
will be to increase the awareness of the Alphatech brand and
accelerate its sales once the health situation stabilises. This
business development plan will ultimately be linked to the
production of the food supplement plant, which is expected to begin
construction in the coming months.
On the Farming Supplies markets, the expansion
of the client base to new market segments such as grain producers,
the development of the web channel with the roll-out of a
purchasing recommendations algorithm and the realisation of new
partnerships will be all the levers that should enable the Group to
accelerate the growth of its Farming Supplies business. The Group
will also benefit from the strong potential of the horse and
landscape markets, a growth driver for the Group that offers solid
opportunities in terms of both organic growth and external growth
in markets that are still highly fragmented.
WINFARM is confident that the strong sales
momentum will continue in H2 2021. The rise in commodities prices
could, however, weigh slightly on the excellent margins. For 2021,
the Group anticipates continued growth in the first half of the
financial year. This growth in the business should be accompanied
by an improvement in EBITDA.
In the longer term, the Group reiterates its
targets, which, by 2025, aim to achieve revenue of around €200m and
an EBITDA margin of around 6.5%. Half of this acceleration in
growth would be achieved through organic growth and half through
external growth.
About WINFARM
Founded in Loudéac, in the heart of Brittany, in
the early 1990s, WINFARM is now the French leader in distance
selling for the agricultural world. WINFARM offers farmers and
breeders comprehensive, unique and integrated solutions to help
them meet the new technological, economic, environmental and social
challenges of the next generation of agriculture. With a vast
catalogue of more than 15,500 product references (seeds,
phytosanitary, harvesting products, etc.), two-thirds of which are
own brands, WINFARM has more than 44,500 customers in France and
Belgium.
In 2020, WINFARM recorded sales of €98.9m,
surpassing its target.
By 2025, WINFARM aims to double in size, with a
revenue target of around €200m and an EBITDA margin of about
6.5%.
For more information about the company:
www.winfarm-group.com
Contacts:
WINFARMinvestisseurs@winfarm-group.com |
|
ACTIFIN, financial communicationsBenjamin
LEHARI+33 (0) 1 56 88 11 11winfarm@actifin.fr |
ACTIFIN, financial press relationsJennifer
JULLIA+33 (0)1 56 88 11 19jjullia@actifin.fr |
1 From 2021, the title sponsor contract becomes
a partnership contract
- WINFARM_CP_RS_2021 vDEF UK
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