LECTRA: First half 2022: very strong growth in revenues and
earnings
First half
2022:
very strong growth in
revenues and earnings
- Revenues: 250.8 million euros
(+71%)
- EBITDA before non-recurring items:
45.2 million euros (+95%)
- Net income: 20.2 million euros
(multiplied by 2.3)
- Free cash flow before non-recurring
items: 14.7 million euros
|
|
|
In millions of euros |
April 1 – June 30 |
January 1 – June 30 |
|
2022 |
2021 |
2022 |
2021 |
Revenues |
128.9 |
80.0 |
250.8 |
146.7 |
Change (%) |
+61% |
|
+71% |
|
EBITDA before non-recurring items(1) |
23.7 |
11.9 |
45.2 |
23.2 |
Change (%) |
+100% |
|
+95% |
|
EBITDA margin before non-recurring items (in % of revenues) |
18.4% |
14.8% |
18.0% |
15.8% |
Net income |
10.9 |
2.9 |
20.2 |
8.9 |
Change (%) |
+274% |
|
+127% |
|
Free cash flow before non-recurring items(1) |
7.7 |
4.5 |
14.7 |
14.3 |
Shareholders’ equity(2) |
|
|
437.1 |
400.8 |
Net cash (+) / Net financial debt (-)(1) (2) |
|
|
(13.3) |
(8.8) |
|
|
|
|
|
(1) The definition of the key performance indicators
is shown in the June 30, 2022 Financial Report (2) At
June 30, 2022 and December 31, 2021
Paris, July
28, 2022. Today,
Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the
consolidated financial statements for the first half of 2022, which
have been subject to a limited review by the Statutory
Auditors.
To facilitate analysis of the Group’s results,
the financial statements are compared to those published in 2021
and to the 2021 pro forma financial statement ("2021 Pro forma"),
prepared by integrating the three acquisitions made in 2021 –
Gerber Technology (“Gerber”), Neteven, and Gemini CAD Systems
(“Gemini”) – as if they had been consolidated from January 1, 2021,
whereas they have been consolidated since June 1, July 28 and
September 27, 2021 respectively.
- GREAT
RESILIENCY IN A DEGRADED ENVIRONMENT
The first semester was significantly marked by
the war in Ukraine and its consequences. As soon as the conflict
began, the Company decided to cease its operations in Russia, by
suspending the activity of its subsidiary Lectra Russia and
stopping all deliveries of products or services. The Group's direct
exposure to Ukraine and Russia is low; the contribution of these
two countries in 2021 accounted for less than 1 percent of
revenues.
This war has accelerated price increases, energy
shortfalls and shortages in some raw materials. However, their
impact on the Group's financial statements was limited due to its
low exposure to energy costs and a limited dependency on those raw
materials affected the most. The Group also adjusted sale prices to
compensate for the increase in its production costs, first in
January and then in July.
In addition, the lockdown periods had a negative
impact on the amount of orders in China. They also caused delays in
the delivery of CAD/CAM equipment, including a portion of that
equipment manufactured in China, estimated at 2.4 million euros,
which had not been recovered at the end of June; the shortfall is
expected to be rectified by the end of September. Moreover,
persistent problems in maritime shipping have caused shipping
delays that adversely affected revenues.
Finally, since the beginning of 2022, the dollar
has significantly strengthened against the euro. With an average
exchange rate of $1.09/€1 in H1, it was up 10% compared to H1 2021.
This change and other currency changes mechanically increased
revenues by roughly 6%. The difference between the observed
exchange rates and the dollar/euro rate used to define the 2022
objectives ($1.13/€1) had only a +2% impact on revenues.
In this environment, the Group has once again
demonstrated its resiliency, with strong earnings growth.
- Q2
2022
Q2 2022 revenues (128.9 million euros) increased
by 61%. EBITDA before non-recurring items (23.7 million euros)
doubled compared to Q2 2021 and the EBITDA margin before
non-recurring items was 18.4%.
Income from operations before non-recurring
items (16.2 million euros) was multiplied by 2.1 and net income
(10.9 million euros) by 3.7, compared to 2021, which included a
non-recurring charge of 3.8 million euros in respect of the
acquisition of Gerber.
Free cash flow before non-recurring items came
to 7.7 million euros (4.5 million euros in Q2 2021).
Comparison to the 2021 Pro forma
In the climate of uncertainty and slowing
economic growth affecting many countries, some of the Group's
customers have decided to postpone their investment decisions.
Furthermore, the strict lockdown measures implemented by the
Chinese government, which became even stricter in late March and
were only gradually lifted from the beginning of June, had a very
negative impact on orders in China.
Despite this context, orders for perpetual
software licenses, equipment and accompanying software,
and non-recurring services (55.3 million euros) increased by
4% compared to Q2 2021. The annual value of new software
subscription orders amounted to 1.9 million euros, down 14%.
Revenues increased by 12% compared to the 2021
Pro forma.
EBITDA before non-recurring items increased by
51% and the EBITDA margin before non-recurring items by 4.8
percentage points.
Partnership between Lectra Turkey and Glengo Teknoloji
On April 25, 2021, the Company announced that
Lectra Turkey had joined forces with Glengo Teknoloji (see press
release issued on that date).
- FIRST HALF
2022
H1 2022 revenues (250.8 million euros) increased
by 71%. EBITDA before non-recurring items (45.2 million euros) was
up 95% and the EBITDA margin before non-recurring items was
18.0%.
Consolidated income from operations before
non-recurring items amounted to 30.7 million euros (16.2 million
euros in H1 2021), up 90%. This includes a 5.6-million-euro charge
for amortization of intangible assets arising from the acquisitions
of Gerber, Neteven and Gemini, and of the activity of Glengo
Teknoloji.
Net income (20.2 million euros) was multiplied
by 2.3.
Free cash flow before non-recurring items came
to 14.7 million euros (14.3 million euros in H1 2021).
Comparison to the 2021 Pro forma
H1 orders for perpetual software licenses,
equipment and accompanying software, and non-recurring services
(107.1 million euros) were up 8% compared to the 2021 Pro forma.
The annual value of new software subscription orders (4.2 million
euros) increased by 33%.
Despite the negative impact of the war in
Ukraine and the lockdown measures in China, H1 2022 revenues
increased by 11%. Revenues from perpetual software licenses,
equipment and accompanying software, and non-recurring services
(100.5 million euros) were up 10%, those from recurring contracts
(80.2 million euros) by 11% and those from consumables and
parts (70.1 million euros) by 12%.
EBITDA before non-recurring items increased by
44% and the EBITDA margin before non-recurring items by 4.1
percentage points.
Balance sheet at June 30, 2022
At June 30, 2022, the Group had a particularly
robust balance sheet, with a consolidated shareholders’ equity of
437.1 million euros (400.8 million euros at December 31, 2021) and
a net financial debt of 13.3 million euros, consisting in financial
debt of 118.5 million euros and available cash of 105.2 million
euros.
The working capital requirement at June 30, 2022
was a negative 16.5 million euros.
- BUSINESS
TRENDS IN 2022
In its 2021 Financial Report, published February
9, 2022, the Group indicated that the acquisitions made in 2021,
and particularly the acquisition of Gerber, give the Group a new
dimension and open new perspectives.
It further explained that uncertainties persist
regarding the evolution of the pandemic and its impacts on the
macroeconomic environment and could continue to weigh on investment
decisions by the Group’s customers. To those uncertainties have
been added the consequences of the war in Ukraine and of the strict
lockdown measures implemented in China.
At the beginning of 2022, the Group set itself
objectives of achieving, in the current fiscal year, revenues in
the range of 508 to 556 million euros (+31% to +43%) and EBITDA
before non-recurring items in the range of 92 to 104 million euros
(+41% to +60%). These objectives were prepared on the basis of the
closing exchange rates on December 31, 2021, and particularly $1.13
to the euro.
While the deterioration of the macroeconomic
environment renders the level of order intake in the second half of
the year uncertain, the order backlog at June 30 remains high and
provides Lectra with good visibility regarding revenues in the
coming months. Furthermore, the Group stands to benefit from the
strength of the dollar against the euro, were the dollar to remain
strong.
In light of the above, the Group now anticipates
achieving full-year 2022 revenues in the range of 514 to
534 million euros (+33% to +38%) and EBITDA before
non-recurring items in the range of 95 to 102 million euros (+46%
to +57%). These new scenarios were established on the basis of the
actual exchange rates in H1, and the rates on June 30, 2022,
particularly $1.04/€1, for the second half of 2022.
The 2021 Annual Financial Report, as well as the Management
Discussion and Analysis of Financial Conditions and Results of
Operations and the financial statements for H1 2022 are available
on lectra.com. Q3 and the first nine months of 2022 earnings will
be published on October 25, 2022.
As a major player in the fashion,
automotive and furniture markets, Lectra contributes to the
Industry 4.0 revolution with boldness and passion by providing
best-in-class technologies.The Group offers industrial intelligence
solutions - software, equipment, data and services - that
facilitate the digital transformation of the companies it serves.
In doing so, Lectra helps its customers push boundaries and unlock
their potential. The Group is proud to state that its 2,500
employees are driven by three core values: being open-minded
thinkers, trusted partners and passionate innovators.Founded in
1973, Lectra reported revenues of 388 million euros in 2021 and is
listed on Euronext Paris (LSS).
For more information, please visit
www.lectra.com
Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris •
FranceTel. +33 (0)1 53 64 42 00 – lectra.comA French Société
Anonyme with capital of €37,742,959 • RCS Paris B 300
702 305
- Lectra_PressRelease_H12022
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