LECTRA: First half 2023: decline in revenues and EBITDA before
non-recurring items in a degraded environment. Confirmation of 2023
objectives revised on April 27.
First half
2023: decline
in revenues and EBITDA
before non-recurring items in a
degraded environment. Confirmation of
2023 objectives revised
on April 27.
- Revenues: 239.6 million euros
(-4%)*
- EBITDA before non-recurring items:
35.3 million euros (-21%)*
- Net income: 13.9 million euros
(-31%)
- Free cash flow before non-recurring
items: 16.6 million euros (+13%)
*Like-for-like
|
|
|
In millions of euros |
April 1 – June 30 |
January 1 – June 30 |
|
2023 |
2022 |
2023 |
2022 |
Revenues |
115.9 |
128.9 |
239.6 |
250.8 |
Change (%)(1) |
-8% |
|
-4% |
|
EBITDA before non-recurring items(2) |
15.6 |
23.7 |
35.3 |
45.2 |
Change (%)(1) |
-30% |
|
-21% |
|
EBITDA margin before non-recurring items (in % of revenues) |
13.4% |
18.4% |
14.7% |
18.0% |
Net income |
6.6 |
10.9 |
13.9 |
20.2 |
Change (%) |
-40% |
|
-31% |
|
Free cash flow before non-recurring items(2) |
7.4 |
7.7 |
16.6 |
14.7 |
|
|
|
|
|
(1) Like-for-like: 2023 figures restated at 2022
exchange rates(2) The definition of the key performance
indicators is shown in the June 30, 2023 Financial Report
Paris, July
27,
2023. Today, Lectra’s Board of
Directors, chaired by Daniel Harari, reviewed the consolidated
financial statements for the first half of 2023, which have been
subject to a limited review by the Statutory Auditors.
Comparisons between 2023 and 2022 are based on
2022 exchange rates unless otherwise stated (“like-for-like”).
As the impact of the acquisition of TextileGenesis (see press
release dated December 8, 2022) on the financial statements for
2023 is not material, like-for-like changes exclude only the
variations in exchange rates.
- Q2
2023
Against the backdrop of slower global growth,
the anticipation of a recession risk in certain countries,
persistent inflation, and continuously rising interest rates,
orders for perpetual software licenses, equipment and accompanying
software, and non-recurring services (39.2 million euros) were down
27% compared to Q2 2022. The accelerating pace of sales in June
brought Q2 2023 orders to 35.7 million euros, an 11% increase over
Q1.
Orders for new software subscriptions, of which
the annual value came to 2.8 million euros, continued to rise,
displaying a growth of 53% compared to Q2 2022, and 7% compared to
Q1 2023.
Q2 revenues (115.9 million euros) were down
8%.
EBITDA before non-recurring items (15.6 million
euros) decreased by 30% and EBITDA margin before non-recurring
items came to 13.4%, down 4.4 percentage points.
- FIRST HALF
2023
In the uncertain environment that characterized
the first half of the year, as many companies continued their
wait-and-see attitude, H1 orders for perpetual software licenses,
equipment and accompanying software, and non-recurring services
(74.8 million euros) were down 30% compared to H1 2022.
The annual value of new software subscription
orders came to 5.5 million euros, up 31%.
Revenues came to 239.6 million euros, down 4%
compared to H1 2022.
While revenues from perpetual software licenses,
equipment and accompanying software, and non-recurring services
(79.5 million euros) were down 21%, recurring contract revenues
(88.6 million euros), which benefited from the growth in
software subscription orders and the acceleration of synergies from
the Gerber acquisition, increased by 11%. Revenues from consumables
and parts (71.4 million euros) were up 2%.
EBITDA before non-recurring items was 35.3
million euros, down 21% and the EBITDA margin
before non-recurring items came to 14.7%, down 3.2 percentage
points
Income from operations came to 23.0 million
euros. This included a 6.3-million-euro charge for amortization of
intangible assets arising from the acquisitions carried out
since 2021 and a non-recurrent income item of 2.6 million
euros.
Net income (13.9 million euros) decreased by 31%
at actual exchange rates.
Free cash flow before non-recurring items came
to 16.6 million euros (14.7 million euros in H1 2022). It is higher
than net income.
At June 30, 2023, the Group had a particularly
robust balance sheet with a consolidated shareholders’ equity of
406.4 million euros and a net financial debt of 4.6 million euros,
consisting in financial debt of 99.1 million euros and cash of
94.5 million euros, after the payment in H1 of 15.2 million euros
in respect of the acquisition of the majority of the capital of
TextileGenesis, and 18.1 million euros in respect of dividends for
fiscal year 2022.
The working capital requirement at June 30, 2023
was a negative 6.4 million euros.
- BUSINESS
TRENDS AND OUTLOOK
In its 2022 Annual Financial Report, published
February 8, 2023, Lectra presented its new roadmap
for 2023-2025. The Group also specified that 2023 remained
unpredictable given the degraded macroeconomic and geopolitical
environment, which lead to numerous uncertainties that could
continue to weigh upon the investment decisions of its
customers.
At the beginning of the year, the Group had set
itself objectives of achieving, in 2023, revenues in the range of
522 to 576 million euros and EBITDA before non-recurring items in
the range of 90 to 113 million euros.
Given the delay in orders for new systems in the
first quarter, and poor visibility on new systems orders for
subsequent quarters, the Group reported on April 27 that it now
anticipated revenues in the range of 485 to 525 million euros (-5%
to +3% at constant exchange rates relative to 2022) and EBITDA
before non-recurring items in the range of 78 to 95 million
euros (-15% to +3% at constant exchange rates relative to 2022).
The Group also noted that despite limited visibility regarding new
systems orders over the next few quarters, there is strong
visibility regarding recurring revenues, which should enjoy
substantial growth and account for 65% of total revenues in 2023.
These revised scenarios had been prepared on the basis of the
closing exchange rates on April 27, 2023, for the remaining nine
months of the year, and particularly $1.10/€1.
The results of the second quarter support these
revised objectives.
A 1-cent appreciation of the euro against the
U.S. dollar in the second half of the year (at an exchange rate of
$1.10/€1) would mechanically decrease revenues by approximately 1.0
million euros and EBITDA before non-recurring items by
0.45 million euros. On the contrary, a 1-cent fall in the euro
against the dollar would mechanically raise revenues and EBITDA
before non-recurring items by the same amounts.
Because the Group's customers operate in a
highly competitive environment that demands they continue to
improve performance, their investments will pick up as soon as the
macroeconomic situation improves. Lectra's roadmap for 2023-2025,
which was launched on January 1, 2023, will enable the Group to
take full advantage of the upturn and accelerate its growth.
The 2022 Annual Financial Report, as well as the Management
Discussion and Analysis of Financial Conditions and Results of
Operations and the financial statements for H1 2023 are available
on lectra.com. Q3 and the first nine months of 2023 earnings will
be published on October 25, 2023.
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 522
million euros in 2022 and is listed on Euronext (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 – www.lectra.comA French Société
Anonyme with capital of €37,788,949 • RCS Paris B 300
702 305
- Lectra_PressRelease_H12023
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