ESI Group: Improved Half-year Results With Increased Revenue & Adjusted Ebit at €18 Million (+43.9% YoY)
09 Septembre 2021 - 06:00PM
Business Wire
ESI continues building its foundation for
improved long-term growth and profitability
- Half year revenues: +4.3% YoY at constant rate (+1.3%
current exchange rate) at €81.8m, in line with previous
guidance
- An improved gross margin rate at 78.2% (vs 77.3%)
- Adjusted EBIT (before IFRS 16) at €18m: +43.9% YoY (+50.8%
cer)
- Net result at €11.1m: +25.1% YoY (+34.1% cer)
Regulatory News:
ESI Group,
Paris, France, (ISIN Code: FR0004110310, Symbol: ESI), today
releases its sales and results for the half year 2021 (period from
January 1st to June 30th) approved by the Board of Directors on
September 3rd, 2021.
Cristel de Rouvray, Chief Executive Officer of ESI
Group, comments: “In H1 2021
we saw overall growth (+4.3% at constant rate), and notably in new
business with a 21.8% growth at constant rate (from €5.0m in
H1-FY20 to €5.9m in 2021), signaling the early results of our
focused approach. We also saw the impact of our healthy run-rate
initiative, demonstrating significant improvement on our margins
and overall financials. As previously announced, while continuing
to deliver on our commitments for 2021, we are working on a 3-year
strategic plan that will be presented on October 5th,
2021.”
(€m)
6/30/2021 6m
6/30/2020 6m
Change
Change
Constant exchange rate
(cer)
Revenue
81.8
80.8
+1.3%
+4.3%
Licenses
70.0
69.2
+1.2%
+4.3%
Services
11.8
11.6
+1.8%
+4.3%
Gross margin
64.0
62.4
+2.4%
+5.7%
% revenue
78.2%
77.3%
EBIT (adjusted1)
18.0
12.5
+43.9%
+50.8%
% revenue
22.0%
15.5%
EBIT
18.2
12.7
+43.2%
+50.0%
Net result
11.1
8.9
+25.1%
+34.1%
% revenue
13.5%
11.0%
Cash
36.2
24.7
+46.4%
Revenue growth and positive momentum on profitability
indicators
Half year revenues were €81.8
million illustrating the stability of the Group’s recurring
business and the rebound of the New Business activity with a growth
of 18.4% and 21.8% cer (from €5.0m in H1-FY20 to €5.9m in 2021). In
Q2 2021, new business increased by 67.8% cer to €2.9 million from
€1.8 million in Q2 2020.
As part of its healthy
run-rate initiative, ESI Group continues its cost management
started in 2020 and shows improved gross margin rates from 77.3% in
H1 2020 to 78.2% in 2021 and increased adjusted EBIT by +43.9%. Net
result jumps 25.1% to €11.1 million.
3 regions grew (excl. forex impact) and Americas is leading
the growth (+10.4%)
The geographical breakdown of
half-year revenues is almost identical to that of the first half of
2020: the EMEA region represents 52.1% (vs. 51.6%) of total
revenues, Asia represents 33.5% (vs. 34.1%) and the Americas
represent 14.4% (vs. 14.3%). Excluding the forex impact, the
Americas region was the one with the highest increase: 10.4%
compared to 5.2% in Asia and 2.0% in EMEA.
Sales in line with the key strengths of the Group
The Group's main customers
continue to show interest in ESI's solutions, which reinforces the
relevance of the value provided.
The Group's four priority
focus industries - Automotive & Ground Transportation,
Aeronautics & Aerospace, Heavy Industry, Energy - accounted for
around 88.6% of revenues before deferred. ESI Group’s sales were
driven by the Automotive market, first industry of the Group, with
a 2.3% increase at current rate.
ESI strengthens its cash flow and its balance sheet
During 2021 first half, ESI
Group improved its Free Cash Flow (FCF) by €2.9m compared to the
first semester 2020 thanks to lower capital expenditure and higher
net cash margin. The Group
strengthens its balance sheet with a strong cash position at
€36.2m, compared to 24.7m€ June 2020. The net financial debt is at
€6.8m vs €14.9m end of June 2020, with a gearing to 6.9% (Net
debt/Equity) vs 15.6% end of June 2020.
Views for the following years
ESI Group’s 1st investor
conference will be held on Tuesday, October 5th, 2021 between
3:30pm and 5:30pm CET where we will share the Group’s long-term
vision and its 3-year plan.
Forward-looking Statements
In millions, except.
percentages
FY21 Range
FY20
H2
51.7
54.7
51.8
Growth
0%
6%
Growth excl. forex
2%
8%
FY
133.5
136.5
132.6
Growth
1%
3%
Growth excl. forex
4%
6%
These statements are subject
to a number of risks and uncertainties, including those related to
the COVID-19 virus and associated further economic and market
disruptions; further adverse changes or fluctuations in the global
economy; further adverse fluctuations in our industry, foreign
exchange fluctuations, changes in the current global trade
regulatory environment; fluctuations in customer demands and
markets; fluctuations in demand for our products including orders
from our large customers; cyber-attacks; expense overruns; and
adverse effects of price changes or effective tax rates. The
company directs readers to its Universal Registration Document –
Chapter 3 presenting the risks associated with the company’s future
performance.
Upcoming events
- Investor Day - October 5th, 2021
- Q3 revenues – October 28th, 2021
About ESI Group Founded in 1973, ESI Group envisions a
world where Industry commits to bold outcomes, addressing high
stakes concerns - environmental impact, safety & comfort for
consumers and workers, adaptable and sustainable business models.
ESI provides reliable and customized solutions anchored on
predictive physics modeling and virtual prototyping expertise to
allow industries to make the right decisions at the right time,
while managing their complexity. Acting principally in automotive
& land transportation, aerospace, defense & naval, energy
and heavy industry, ESI is present in more than 20 countries,
employs 1200 people around the world and reported 2020 sales of
€132.6 million. ESI is headquartered in France and is listed on
compartment B of Euronext Paris. For further information, go to
www.esi-group.com.
1 EBIT is a non-GAAP measure composed of EBIT (IFRS) retreated
from the impact of IFRS 16 standard. This impact amounts to €+0.2m
for 2021 first half, composed of lease retreatment for €+3.0m and
amortization for €-2.8m. This impact and its components are stable
vs 2020 first half.
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ESI Group Florence
Barré investors@esi-group.com +33 1 49 78 28 28
Verbatee - Press & Shareholder Relations Jérôme Goaer, j.goaer@verbatee.com, +33 6 61
61 79 34 Aline
Besselièvre, a.besselievre@verbatee.com, +33 6 61 85 10
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