Press Release
First quarter 2024 revenues
Sales down 20% as reported
Accelerating synergiesnow estimated (net of
costs) at 40 million euros for 2024 and over 200 million euros from
2026 onwards
GUIDANCE CONFIRMED
Paris (France), April 24, 2024 - Vantiva (Euronext
Paris: VANTI) today announced its unaudited sales for the
first quarter of 2024.
"Connected Home" sales fell by 21.7% over the quarter,
despite the integration of the Home Networks business in 2024 and
the contribution of the diversification activities. This is due to
a strong first quarter in Q1 2023, destocking in the sector and a
slowdown in capex from operators.“Supply Chain
Solutions" sales were down 13.2%.
- Group sales totaled 458 million euros for the quarter, down 20%
as reported (-19.1% at constant exchange rates).
- The contribution of Connected Home was 358 million euros, down
21.7% after the integration of the Home Networks business for 2024
(-20.8% at constant exchange rates). This amount includes 18
million euros of revenues from the diversification activities.
- The contribution from SCS was 100 million euros, down 13.2%
(-12.4% at constant exchange rates).
- Vantiva accelerates the implementation of synergies linked to
the integration of Home Networks and continues to optimize “Supply
Chain Solutions”.
- The group is now targeting 40 million euros in synergies (net
of costs) by 2024, linked to the integration of Home Networks.
- Synergy potential much greater than initially expected and
estimated at over 200 million euros from 2026 onwards compared to
over 100 million euros initially expected.
- The 2024 guidance is
confirmed.
Luis Martinez-Amago, group Managing
Director, comments:
"As expected, the first quarter was very weak, due to the
general slowdown in demand against a backdrop of persistently high
inventories, and we had prepared ourselves accordingly. The basis
for comparison is also unfavorable, since Q1 23 was a strong
quarter, stemming from a cycle of high demand due to the
precautions taken during the chip crisis, with an exceptional level
of activity at some of our strategic customers. The scale of the
slowdown is in line with our forecasts and justifies the strong
adjustment measures we are currently deploying. We expect business
to pick up gradually in the second quarter and second half of the
year. The integration of Home Networks is proceeding according to
plan and will generate the expected synergies more rapidly than
anticipated, enabling the group to defend its profitability in this
market context, and to be ready to benefit from the market
recovery".
I- Q1 2024
sales
In € million, continuing operations |
Q1 2024 |
Q1 2023 |
Current exchange rates |
Constant exchange rates |
Revenue |
458 |
573 |
-20.0% |
-19.1% |
First quarter highlights
The downturn in “Connected Home” sales is in line with our
forecasts at the start of the year. It can be explained by a first
quarter 2023 which saw an exceptional level of deliveries with some
of our biggest customers, both Vantiva and Home Networks. The
return to normal with these customers and a general downturn in
business, linked to the need to clear inventories, are therefore at
the root of this downturn. A sequential improvement is expected
from the second quarter of 2024 onwards.The integration of the Home
Networks business is proceeding according to plan, and the group is
accelerating the implementation of synergies, which should reach,
net of costs, around 40 million euros by 2024 and exceed 200
million euros from 2026 onwards.
The "SCS" business also saw a decline in sales, albeit more
contained. Diversification activities helped limit the impact of
the structural decline in demand for optical disks.
The 2024 guidance is confirmed.
OutlookThe group confirms its
guidance for fiscal 2024:
- EBITDA > €140 million
- FCF(1) > €0 million
(1) After interest and taxes
and before restructuring and Home Networks acquisition costs
II- Analysis by division
and highlightsConnected Home
Breakdown of sales by product
|
|
|
|
|
|
In € million, continuing operations |
Q1 2024 |
Q1 2023 |
Current exchangerates |
Constant exchange rates |
Revenue |
358 |
458 |
-21.7% |
-20.8% |
Of
which by product |
|
|
|
|
Broadband |
212 |
380 |
-44.2% |
-43.7% |
Video |
127 |
77 |
65.2 % |
67.5% |
Diversification |
18 |
0 |
ns |
|
“Connected Home” sales totaled 358 million
euros in the first quarter, down 21.7% despite the contribution of
Home Networks activities for 2024, and accounted for 78% of group
sales (80% in Q1 2023). At constant exchange rates, the decline
would have been 20.8% compared with Q1 2023 as reported.
Sales were impacted by continued weak activity due to order
reductions by our customers in a context of destocking, and also by
a particularly high basis for comparison due to an exceptional
level of deliveries with certain strategic customers in North
America and Europe.
The integration of Home Networks explains the sharp rise in
Video sales.
Diversification activities contributed 18 million euros, and the
group signed new contracts for its "Internet of Things" (IoT)
activities.
Supply Chain Solutions
In € million, continuing operations |
Q1 2024 |
Q1 2023 |
Current exchange rates |
Constant exchange rates |
Revenue |
100 |
115 |
-13.2% |
-12.4% |
First quarter SCS sales totaled 100 million
euros, representing 22% of group sales (20% in Q1 2023). This
represents a 13.2% decline compared with Q1 2023, and at constant
exchange rates would have been down 12.4%. This variation is the
result of contrasting trends: demand for optical discs continues to
fall, but is partially offset by price increases, while sales of
vinyl discs and logistics services have risen.
###
Warning: Forward Looking Statements
This press release contains certain statements that constitute
"forward-looking statements", including but not limited to
statements that are predictions of or indicate future events,
trends, plans or objectives, based on certain assumptions or which
do not directly relate to historical or current facts. Such
forward-looking statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the future results expressed, forecasted, or implied by such
forward-looking statements. For a more complete list and
description of such risks and uncertainties, refer to Vantiva’s
filings with the French Autorité des marchés financiers (AMF). The
Universal Registration Document (Document d’enregistrement
universel) for fiscal year 2022 was filed with the Autorité des
marchés financiers on April 26, 2023, under no. D.23-0337, and an
amendment was filed with the Autorité des marchés financiers on
December 8, 2023, under no. D.23-0337-A01.
###
About Vantiva
Pushing the Edge
Vantiva shares are admitted to trading on the regulated market
of Euronext Paris (VANTI).
Vantiva, formerly known as Technicolor, is headquartered in
Paris, France. It is an independent company which is a global
technology leader in designing, developing and supplying innovative
products and solutions that connect consumers around the world to
the content and services they love – whether at home, at work or in
other smart spaces. Vantiva has also earned a solid reputation for
optimizing supply chain performance by leveraging its decades-long
expertise in high-precision manufacturing, logistics, fulfillment
and distribution. With operations throughout the Americas, Asia
Pacific and EMEA, Vantiva is recognized as a strategic partner by
leading firms across various vertical industries, including network
service providers, software companies and video game creators for
over 25 years. The group’s relationships with the film and
entertainment industry goes back over 100 years by providing
end-to-end solutions for its clients.
Following the acquisition of CommScope’s Home Networks in
January 2024, Vantiva continues its 130-year legacy as a global
leader in the connected home market.
Vantiva is committed to the highest standards of corporate
social responsibility and sustainability across all aspects of
their operations.
For more information, please visit vantiva.com and follow
Vantiva on LinkedIn and Twitter.
Contacts
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