EXEL INDUSTRIES :2020-2021 Full-year results : Significant
improvement in margins combined with a sharp reduction in debt
PRESS
RELEASE Friday,
December 17, 2021
2020-2021 Full-year resultsSignificant improvement in
margins combined with a sharp reduction in debt |
- Sales up
16%, double-digit growth in almost all activities
- Strong financial
performance, with recurring EBITDA up 46% to €78
million for the year and a recurring EBITDA margin of 8.9%
- Net income of
over €43 million
- Proposed
dividend payment of €1.60 per share
- A
consolidated and robust cash position with significantly
improved debt ratios including leverage of 0.5x recurring
EBITDA
2020-21 FULL-YEAR RESULTS
EXEL Industries (€ millions) |
2019‐2020 |
2020-2021 |
Change reported |
|
|
SALES |
754.4 |
876.8 |
16% |
|
Recurring EBITDA* |
53.3 |
77.8 |
46% |
|
% of sales |
7.1% |
8.9% |
|
|
CURRENT OPERATING INCOME |
35.3 |
54.7 |
55% |
|
% of sales |
4.7% |
6.2% |
|
|
Non‐recurring items |
-29.9 |
5.3 |
|
|
Net financial income/expense |
-11.1 |
-2.1 |
|
|
Tax and share of profit of associates |
-5.1 |
-14.4 |
|
|
NET INCOME/(LOSS) |
-10.7 |
43.5 |
|
|
% of sales |
-1.4% |
5.0% |
|
|
NET FINANCIAL DEBT |
-87.0 |
-42.4 |
-51% |
|
Leverage (NFD/recurring EBITDA) |
1.6 |
0.5 |
|
|
GEARING (NFD/shareholders’ equity) |
25% |
11% |
|
|
* Recurring EBITDA = current operating income (EBIT) +
depreciation and amortization of non-current assets + change in
provisions (excluding provisions on current assets) + share of
profit of associates
SALES
12-month revenue €m |
2019 - 2020 |
2020 - 2021 |
Change in value |
Change in % |
Reported |
Reported |
Reported |
*like-for-like |
Reported |
*like-for-like |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGRICULTURAL
SPRAYING |
332.1 |
380.9 |
48.8 |
53.9 |
14.7% |
16.2% |
|
|
|
|
|
|
|
SUGAR BEET
HARVESTERS |
114.2 |
135.5 |
21.4 |
23.3 |
18.7% |
20.4% |
|
|
|
|
|
|
|
LEISURE |
121.1 |
132.4 |
11.3 |
10.5 |
9.4% |
8.7% |
|
|
|
|
|
|
|
INDUSTRY |
187.0 |
227.9 |
40.9 |
35.1 |
21.9% |
18.8% |
|
|
|
|
|
|
|
EXEL
Industries Group |
754.4 |
876.8 |
122.4 |
122.8 |
16.2% |
16.3% |
*like-for-like = at constant foreign exchange
rates and perimeter
Full-year revenue was up 16% at
€876.8 million, a rise of €122.4 million including
a scope effect of €11 million linked to the acquisition of Intec in
January 2020 and the impact of the crisis on the 2019-20 reference
period. This favorable impact was offset by negative foreign
exchange rate effects linked notably to the US dollar (down €11.6
million).
Comments on sales per activity are detailed in
our press release of October 28, 2021. As a reminder, the nautical
activity was acquired on September 30, 2021 with no impact on the
income statement.
FINANCIAL PERFORMANCE
Recurring EBITDA increased to €77.8
million (8.9% of sales) from €53.3 million
(7.1% of sales in
2019-20). The post-COVID
economic recovery started at the end of the 2019-20 period and
accelerated during 2020-21. Production costs were subject to strong
and continuous inflation over the year, including raw materials,
components and logistics. The Group partially adapted its pricing.
Good control of fixed costs enabled the company to maintain strong
growth in operating income, up by nearly €20 million from €35.3
million to €54.7 million.
Net income rose sharply to €43.5
million, compared with a net loss of €10.7 million in
2019-20, which was particularly affected by non-recurring
items, including €26 million goodwill impairment for Agricultural
Spraying in addition to €3.9 million of non‐recurring expenses. It
comprises the following elements:
- Net
exceptional income of €5.3 million mainly due to a
revaluation of pension liabilities in the UK.
- A net
financial expense of €2.1 million, primarily composed
of borrowing costs. Changes in foreign exchange rates had a limited
effect on the results for the period, whereas exchange rates had a
negative impact of €7.9 million in 2020.
- A tax
expense of €14.8 million, in line with the increase in
income.
BALANCE SHEET
Net Financial Debt at September 30,
2021 reduced to €42.4 million,
compared to €87.0 million in 2020. Strong cash generation
during the year was made possible by strict control of working
capital despite the increase in sales.
Financial leverage for the year 2020-21 (Net
financial debt/recurring EBITDA) remains at a controlled level of
0.5, compared to 1.6 the previous year.
Furthermore, the EXEL Industries group has lines
of financing that allow it to support its operating and, where
applicable, external growth requirements. A €35 million bond issue
incorporating CSR criteria was subscribed to by investors with a
maturity of 6 and 7 years. The interest rate will be adjusted based
on the achievement of CSR objectives.
DIVIDENDS
The distribution of a dividend of €1.60 per
share, corresponding, as in previous years, to 25% of consolidated
net income, will be proposed to the Annual General Meeting on
February 8, 2022.
AUDIT PROCESS
The Group Audit Committee met on Tuesday,
December 14, 2021.
The Board of Directors met on Wednesday,
December 15, 2021 and approved the group parent company and
consolidated financial statements for the year ended, September 30,
2021.
The Statutory Auditors have finished certifying the parent
company and consolidated financial statements and will shortly
issue a report without reservations.
OUTLOOK
-
AGRICULTURAL SPRAYING
- End of subsidies
in North America
- Agricultural
commodity prices expected to remain high
- Continued demand
driven by the post-COVID economic recovery and performance
improvement requirements
- Order book up
and ahead of FY 2020-21
- Continuing
shortage of components affecting the pace of invoicing
- The announcement
of our 3S technological solution for ultra-localized spraying and
our first viticulture robot consolidate our reputation as an
innovative company.
- SUGAR
BEET HARVESTING
- Sugar beet
growing under heavy pressure with historically high grain
prices
- Stabilization of
new machine sales
- Continued growth
in Terra Variant sales, in line with farmers’ financing
capacities.
-
GARDENING
- Business should
be sustained at the beginning of the year at least due to
distributors’ concerns about plastic shortages.
- The arrival of new products allows
for dynamic development of the Hozelock brand.
- NAUTICAL
INDUSTRY
- The integration
of this new activity continues with a greater emphasis on the 3
flagship brands Wauquiez, Rhéa Marine, Tofinou
- The reorganization in progress and
the repositioning of prices in line with the market should make it
possible to improve margins.
-
INDUSTRY
- Underlying
markets (automotive, furniture, construction, etc.) are expected to
grow despite the shortage of components for our customers in the
car industry
- Some disruptions to our rate of
invoicing due to pressure on supplies, in particular in the
technical hoses business.
The Group confirms its confidence in the outlook
in general, and in particular thanks to our multi-activity
strategy, which provides stability. In addition, our sales are
sustained by strong demand, which allows us to adjust our prices in
line with inflation on our production costs.
EXEL Industries group CEO Yves Belegaud
said: “In a context of economic recovery and despite the
current uncertainties related to the health crisis, the EXEL
Industries Group’s activities have grown considerably. Our
operating margins have risen sharply and the Group has succeeded in
halving its financial debt through strict management of its
expenses and working capital. All of our activities have been
affected by the supply difficulties, but have managed to maintain a
good level of service to our customers despite these supply chain
disruptions. The Group has also been able to cope with the rise in
production costs, limiting its impact on profitability to the
greatest extent possible. The Group has continued to diversify its
activities this year by acquiring three well-known brands in the
nautical industry.”
UPCOMING EVENTS
Tuesday, January 25, 2022, after market closing,
2021-22 Q1 Revenue
Tuesday, February 8, 2022: Annual General
Meeting of Shareholders
About EXEL Industries
EXEL Industries is a French family-owned group
that designs, manufactures and markets capital equipment and
provides associated services that enable its customers to improve
efficiency and productivity or enhance their well-being while
achieving their CSR objectives.Driven by an innovation strategy for
over 60 years, EXEL Industries has based its development on
innovative ideas designed to offer customers unique, efficient,
competitive and user-friendly products.
Since its inception, the Group has recorded
significant growth in each of its markets through both organic
growth and corporate acquisitions, underpinned by a stable
shareholder base guided by a long-term development strategy.
EXEL Industries employs approximately 3,546
permanent employees spread across 27 countries and five continents.
The Group posted FY 2020-2021 sales of €877 million.
Euronext Paris, SRD Long only – compartment B
(Mid Cap) EnterNext© PEA-PME 150 index (symbol: EXE/ISIN
FR0004527638)Press release available on
www.exel-industries.com.
Yves BelegaudGroup Chief Executive
OfficerYves.belegaud@exel-industries.com |
Thomas GermainCFO/Financial
Communicationdirection.communication@exel-industries.com |
2.13.0.0
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