- Half-year revenues up 34% to €49.7 million
- Commercial momentum accelerated in Q2 2022, +52% vs. Q2
2021
- Strong rebound in heavy vehicle activity: +56% vs. Q2 2021
- Sustained growth in light vehicles: +40% vs. Q2 2021
- Continued roll-out of the strategic plan
- Establishment of North American headquarters and gigafactory in
Columbus, Ohio
- Signature of commercial partnerships with global transportation
players
- Expansion of product range and service offering
- Adjusted EBITDA growth of 21%, solid financial structure and
cash position of €46.5 million at the end of June 2022
- Expected annual revenues of more than 100 M€
- Confirmation of financial objectives for 2027
Regulatory News:
Forsee Power (FR0014005SB3 – FORSE – the « Company
») (Paris:FORSE), the expert in smart battery systems for
sustainable electromobility, announces today its 2022 half-year
results, approved by the Board of Directors on September 14,
2022.
Christophe Gurtner, Chairman and Chief Executive Officer of
Forsee Power comments:
« Forsee Power's sales momentum increased throughout the first
half of 2022 despite a tense supply chain environment. The second
quarter of 2022 was marked by a recovery in sales in the heavy
vehicle segment, while the growth of the activity in the light
vehicle market remained strong. In parallel with this good
commercial performance, we also improved our adjusted EBITDA by 21%
and intend to continue improving our financial performance.
Semester after semester, electromobility is establishing as the new
standard for the transportation of people and goods. To meet this
booming demand, we are continuing to deploy our strategic plan,
which was marked during the first half of the year by our expansion
into the US market and the extension of our range of innovative
products and services. Finally, the Company has solid financial
resources to pursue its growth as of the second half of 2022 and
thus consolidates its position as the leader in intelligent battery
systems ».
Key figures from the consolidated half-year statement
In €m - IFRS standards
H1 2021
H1 2022
Change
Change %
Sales
37.2
49.7
+12.6
+34%
Heavy vehicles
29.6
38.5
+8.9
+30%
Light vehicles
7.6
11.2
+3.6
+48%
EBITDA1
(8.1)
(8.2)
-0.1
-1%
EBITDA margin
(22)%
(16)%
Adjusted EBITDA2
(7.9)
(6.2)
+1.7
+21%
Adjusted EBITDA margin
(21)%
(12)%
Underlying operating income
(10.2)
(12.2)
-2.0
-20%
Operating income
(10.2)
(12.2)
-2.0
-20%
Financial result
(6.4)
2.5
+8.9
+139%
Net consolidated income
(16.8)
(9.8)
+6.9
+41%
The audit on the consolidated accounts have been carried
out.
2022 Half-year results
In the first half of 2022, the Company reported revenues of
€49.7 million, up 34% compared with 2021. This good commercial
performance benefited in the second quarter from the recovery of
activity in the heavy vehicle market (+30%) and continued strong
activity in the light vehicle segment (+48%). In a context of
tensions on the supply of certain electronic components, the
Company has maintained its efforts in terms of flexibility in order
to satisfy the strong demand of the electromobility market.
In terms of geographical breakdown of revenues, the French
market is the main contributor to half-year revenues, while the
rest of Europe is growing strongly, now representing 36% of sales
(vs. 10% in H1 2021).
The Group posted an adjusted EBITDA margin of (12)% compared to
(21)% a year ago. This positive development is mainly due to:
- the improvement in gross margin (+€3.3m) resulting from
improved productivity and higher volume; - the integration of the
net operating costs of the new Holiwatt activity taken over by the
Group in July 2021 (-€1.5m).
On a like-for-like basis (excluding Holiwatt integration costs),
adjusted EBITDA for the first half of 2022 would have amounted to
(-€4.7m), or 10% of the Group's revenues.
As a result, operating profit for the first half of 2022
amounted to (-€12.2m), down from the operating profit recorded in
the first half of 2021 (-€10.2m).
During the past six months, financial income was positive at
€2.5 million, compared with (-€6.4 million) in H1 2021.
In total and after taking into account a tax charge of €0.2
million, the net loss for the first half of 2022 improved
significantly and amounted to (-€9.8 million) compared to (-€16.8
million).
Group consolidated cash flow
In €m
H1 2021
H1 2022
Change
Free cash flow from operations
1.0
(15.2)
-16.2
Free cash flow from investing
(4.5)
(5.7)
-1.2
Free cash flow from financing
(3.6)
(3.5)
+0.1
Change in cash
(7.1)
(24.4)
-17.3
A solid balance sheet position
During the first half of 2022, the Group's working capital
balance represented 62% of half-year revenues, compared with 50% a
year earlier. This increase is the direct consequence of the
increase in inventory levels (+11.1 M€) in a tense supply
context.
In addition, CAPEX (excluding the IFRS 16 impact) during the
past six months amounted to €2.0 million, or 4% of sales, a lower
level than last year (6%) and in line with the announced objective
(less than 10% of sales).
As of June 30, 2022, the Company had a strong balance sheet;
shareholders' equity of €61.3 million, compared to €69.2 million as
of December 31, 2021.
The increase in cash flow from operating activities is due to
the deterioration in the change in working capital.
The negative change in cash flow from investing activities is
due to the acquisition of NEoT Capital shares from Mitsubishi
Corporation.
Lastly, cash flow from financing activities was stable.
In total, as of June 30, 2022, the Group's cash position
amounted to €46.5 million compared to €70.8 million as of December
31, 2021.
Gross financial debt was stable at €54.4 million at June 30,
2022, compared with €53.7 million at December 31, 2021.
Recent and post closing events
Business Development
- Order to equip 420 Wrightbus buses with ZEN SLIM battery
systems;
- Ballard Motive Solutions chooses Forsee Power high-power
battery systems to equip fuel cell Refuse Collection Vehicles
- Started deliveries of 5,000 GO 10 batteries to Omega Seiki
Mobility in India for their RAGE+ electric 3-wheelers.
Development of new products and services
- Signing of a partnership with EDF Store & Forecast for the
development of mobile and intelligent electricity storage systems
with second life batteries
Industrial development
- Establishment of the North American headquarters and a
gigafactory in Columbus, Ohio.
Acquisition
- Acquisition of shares in NEoT Capital from Mitsubishi
Corporation, a company dedicated to financing in the renewable
energy and electric mobility sectors to strengthen the Group's
service offering.
Impact of Covid-19 and the conflict in Ukraine
- The first half of 2022 was affected by the increase in cases of
Covid-19 in China, particularly in Shanghai, which exposes the
Group to pandemic risk due to the presence in China of one of its
production sites and some of its suppliers.
- The Group is not exposed to the restrictions imposed on Russia,
as Forsee Power has no employees, customers or suppliers in that
country. However, the Group is exposed to indirect logistical
impacts, impacts linked to increases in the cost of materials, and
impacts linked to the geopolitical situation in Ukraine and the
energy sector.
Strategy and outlook
In the second half of 2022, Forsee Power will focus on the
development of its production unit in the United States with the
objective of reaching a production capacity of 3 GWh by 2027 and
will continue to develop its commercial partnerships as well as its
R&D work in order to expand its product and service
offering.
The Group announces a sales target of over €100 million in 2022
and also confirms its financial objectives for 2027, namely to
achieve revenues of around €600 million and EBITDA and adjusted
EBITDA margins both above 15%.
Forsee Power remains cautious about the uncertainties linked to
the Covid-19 crisis, particularly in China where the Group operates
one of its 4 production sites, and also the impact of the conflict
in Ukraine, the logistical impact between Asia and Europe, the rise
in raw material prices and the tense supply situation for certain
electronic components.
Next financial communication: Q3 2022 sales on November
9, 2022 before market opening.
The half-year financial report will be available on the
Company's website, in the investor section:
https://www,forseepower-finance,com/index,php/en/documentation
Forsee Power joins the CAC® Small Index
Following the annual review of the Euronext Paris indices on
September 8, 2022, the Scientific Council of the Indices has
decided to admit Forsee Power in the sample of the CAC Small
index.
The effective date is Friday, September 16, 2022 after market
close.
About Forsee Power
Forsee Power is a French industrial group specializing in smart
battery systems for sustainable electric transport (light vehicles,
off-highway vehicles, buses, trains and ships), A major player in
Europe, Asia and North America, the Group designs, assembles, and
supplies energy management systems based on cells that are among
the most robust in the market and provides installation,
commissioning, and maintenance on site and remotely, Forsee Power
also offers financing solutions (battery leasing) and second-life
solutions for transport batteries, The Group recorded revenue from
sales of EUR 72,4 million in 2021 and has more than 600 employees,
For more information: www,forseepower,com | @ForseePower
1The EBITDA metric corresponds to operating income before
amortization and impairment of intangible assets, amortization of
rights of use on property, plant and equipment, depreciation and
impairment of property, plant and equipment and net impairment of
assets. This indicator is detailed in paragraph 2.1 of the
half-year financial report.
2 In addition to EBITDA, the Group also monitors adjusted
EBITDA. This alternative performance metric corresponds to EBITDA
adjusted for share-based compensation expenses. The Group considers
that these expenses do not reflect its current operating
performance, in particular for equity-settled compensation plans,
as they do not have a direct impact on cash. This indicator is
detailed in paragraph 2.1 of the half-year financial report.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220914005659/en/
Forsee Power Sophie Tricaud VP Corporate affairs and
Sustainability investors@forseepower.com
NewCap Thomas Grojean Quentin Massé Investor Relations
forseepower@newcap.eu +33 (0)1 44 71 94 94
NewCap Nicolas Merigeau Media Relations
forseepower@newcap.eu +33 (0)1 44 71 94 98
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