- Highly successful IPO on the Euronext Growth® market in
Paris
- Strong growth of 14% in 2021 revenue to €46.1 million and
EBITDA margin of 20%
- Very encouraging start to 2022, with first-quarter revenue
of €13.8 million
- Group’s financial targets for 2024 reiterated
Regulatory News:
Groupe Berkem (Paris:ALKEM), a leading player in bio-based
chemicals (ISIN code: FR00140069V2, Ticker: ALKEM), announces
its consolidated results for the year ended December 31, 2021, as
approved by its Board of Directors on April 15, 2022. The audit
procedures on the annual accounts have been conducted and the
auditors' report is being issued. Groupe Berkem also reports its
2022 first-quarter revenue and provided an update on its recent
business trends and outlook.
Olivier Fahy, Chairman and Chief Executive Officer of Groupe
Berkem stated: “2021 was a game-changing year for Groupe
Berkem. We completed our IPO in early December, capping off a solid
year from a business and financial perspective. Along with our
financial performance, we have demonstrated in recent months the
effectiveness of our strategy of meeting the growing demand among
industries for natural products. We now sell 100% bio-based resins
for the paints market, delivering a performance equivalent to
conventional products at a competitive cost. Staying true to our
corporate purpose and in line with the commitments we gave ahead of
our IPO, we are well-placed to achieve a healthy pace of profitable
growth over the next few years. Accordingly, we are reiterating our
financial targets for 2024.”
Anthony Labrugnas, Chief Financial Officer of Groupe Berkem,
added: “Our performance during 2021 reflects Groupe Berkem’s
ability to raise our profitability while pursuing ambitious organic
growth. We maintained the same positive momentum in the first few
months of 2022, despite pressure on our supply chain in the current
market environment. The investments we made in recent years,
especially in our Lixol subsidiary, have also started to pay off.
Lastly, we strengthened our financial strength with our successful
IPO, helping to optimize our balance sheet.”
2021 FULL-YEAR RESULTS
2021 income statement
In thousands of euros
2021 2020 % change
Revenue
46,066
40,574
14%
Sales of goods
27
-
Production sold (goods)
42,715
38,985
Production sold (services)
3,325
1,589
Capitalized production
1,725
1,383
Production in Inventory
529
-196
Operating subsidies
722
1,050
Reversal of impairment and provisions
611
96
Other income
6
144
Other operating income
1,050
-
Operating revenue
50,709
43,050
18%
Purchases consumed
-19,770
-15,536
Staff costs
-11,470
-10,287
External charges
-8,935
-8,254
Change in inventories
363
-176
Other operating expense
-301
-430
Taxes other than on income
-788
-897
Depreciation and amortization
-4,247
-2,972
Operating income/(loss)
5,560
4,851
15%
Net financial income/(expense)
-2,766
-150
Income from consolidated
companies
2,794
4,701
-41%
Non-recurring income and expense
-1,297
-2,107
Income tax expense
-770
-1,146
Amortization of goodwill
-
-15
Consolidated net income
727
1,462
-50%
Non-controlling interest
193
21
Net income attributable to owners of
the parent
534
1,441
-63%
Notes: The 2021 consolidated income
statement is an unaudited pro forma 12-month income statement, with
the audited consolidated financial statements covering the period
from March 8, 2021 (date of the takeover of BERKEM DEVELOPPEMENT)
to December 31, 2021. The 2020 income statement is derived from the
audited combined financial statements and corresponds to the sum of
the parent company financial statements of BERKEM GROUP and the
consolidated financial statements of BERKEM DEVELOPPEMENT, BERKEM,
ADKALIS, LIXOL, and EUROLYO.
Strong growth of 14% in revenue to €46.1 million and EBITDA
margin of 20% in 2021
Groupe Berkem’s 2021 revenue totaled €46.1 million in 2021, up
close to 14%1 from €40.6 million in 2020.
The plant extraction division contributed 31.5% (vs. 35% in
2020) of 2021 revenue, or €14.5 million. The formulation division
contributed 68.5% (vs. 65% in 2020) of 2021 revenue, or €31.6
million. The formulation division’s revenue recorded a strong
increase of 20% in 2021. The key factors behind this rise were an
acceleration in demand for bio-based solutions in the construction
sector (up 33%) and also in the pest control market (up 21%).
In 2021, purchases consumed, mainly comprising raw materials
purchases, amounted to €19.8 million. Staff costs rose to €11.5
million, up 11% compared to 2020, following the recruitments to
support the acceleration in the Group’s growth.
Groupe Berkem continues its drive to invest in R&D and
regulatory affairs in order to sustain its level of innovation and
support its applications for marketing approval. 6% of revenue was
invested in R&D in 2021.
EBITDA2 totaled €9.2 million, up from €7.7 million in 2020 and
representing an EBITDA margin of 20%, ahead of the 19% posted in
2020.
Operating income came to €5.6 million in 2021, up from €4.8
million in 2020 (+15%).
Net financial expense came to €2.8 million in 2021, with
consolidated net income at €2.8 million before tax and
non-recurring items. Non-recurring income and expenses,
corresponding in part to internal costs related to Groupe Berkem’s
IPO, came to €1.3 million during the year. Income tax expense
totaled €0.8 million in 2021.
Lastly, net income attributable to owners of the parent came to
€0.5 million in 2021.
Net cash position of €15.4 million at December 31,
2021
In December 2021, the Company completed a €43.9 million capital
increase. Since the initial offering was oversubscribed, the
Company exercised the extension clause in full. In addition, the
total size of the Offering was increased to €52.2 million following
the partial exercise of the overallotment option. The total number
of Groupe Berkem shares sold in connection with the IPO came to
5,615,191, of which 4,719,222 were new ordinary shares and 895,969
were existing shares.
In line with the IPO guidance, Groupe Berkem devoted a portion
of the proceeds raised from the capital increase to strengthening
its balance sheet by redeeming some of the convertible bonds in
shares. Consequently, net debt at December 31, 2021 was €4.4
million, compared with €39.2 million in 2020.
At December 31, 2021, Groupe Berkem held a net cash position of
€15.4 million.
2022 FIRST-QUARTER REVENUE
Groupe Berkem’s 2022 first-quarter revenue totaled €13.8
million, up 14% from the €12.1 million recorded in the first
quarter of 2021.
The plant extraction division contributed 32.6% of this
revenue, or €4.5 million, up 35.5% from €3.3 million in the first
quarter of 2021. The formulation division generated 67.4% of
revenue. Its contribution totaled €9.3 million, up 6.3% versus €8.8
million in the same period of the previous year.
UPDATE ON BUSINESS TRENDS
Management
In January 2022, Groupe Berkem appointed Éric Moussu as Chief
Commercial Officer to strengthen its management team. The solid
expertise he has gained over his 30-year career in the chemicals
sector will be a major asset for achieving the Group’s future
ambitions.
Business trends
Tensions on raw materials did not have a significant impact on
the 2021 financial year. In the first quarter of 2022, there was no
impact on revenues but on the margin level of certain activities in
the formulation division. Groupe Berkem has implemented the
necessary measures to offset these increases.
In March 2022, Groupe Berkem launched a range of 100% bio-based
resins for the construction paints market. The new offering was
designed using bio-based, renewable raw materials, capable of
replacing petrochemical-based raw materials. One of the
game-changing, innovative features of this resin is that it uses a
100% bio-based solvent. This groundbreaking innovation delivers the
same performance as a conventional product: hardness over time,
good drying performance, toughness, and resistance to aging,
etc.
International and Regulatory Affairs
Groupe Berkem generated 28% of its revenue in export markets
during 2021 (versus 28.5% of its revenue in 2020). At March 31,
2022, it held 118 marketing approvals, with a further 71
applications under review.
OUTLOOK
Ambitious financial targets for 2024 reiterated
The Group is reiterating its 2024 target revenue of at least €65
million, which may be increased to at least €85 million should it
make acquisitions. By the same target date, the Group’s target is
to raise the EBITDA margin to around 25%.
Publication of the 2021 annual report
The 2021 annual report will be available on the Company’s
website and filed with the AMF on April 29, 2022.
Next financial report:
First-half 2022 revenue: July 21, 2022 (after the market
close)
ABOUT GROUPE BERKEM
Founded in 1993 by Olivier Fahy, Chairman and Chief Executive
Officer, Groupe Berkem is a leading force in the bio-based
chemicals market. Its mission is to advance the environmental
transition of companies producing the chemicals used in everyday
lives (cosmetics, food and beverages, construction, public hygiene,
etc.). By harnessing its expertise in both plant extraction and
innovative formulations, Groupe Berkem has developed bio-based
boosters—unique high-quality bio-based solutions augmenting the
performance of synthetic molecules. Groupe Berkem achieved a
revenue of €46 million and an EBITDA margin close to 20% in 2021.
The Group has almost 170 employees working at its head office
(Blanquefort, Gironde) and three production facilities in Gardonne
(Dordogne), La Teste-de-Buch (Gironde), and Chartres
(Eure-et-Loir).
Groupe Berkem has been listed on Euronext Growth Paris since
December 2021 (ISIN: FR00140069V2 – ALKEM)
www.groupeberkem.com
APPENDIX
Consolidated balance sheet3 In thousands of euros
Dec. 31, 2021
Gross
Depr., amort., prov.
Net
Intangible assets
56,920
- 1,895
55,026
o/w goodwill
29,693
-
29,693
Property, plant and equipment
35,487
- 22,015
13,472
Financial assets
226
-
226
Investments in associates
-
-
Total non-current assets
92,632
- 23,910
68,723
Inventories and work in progress
7,505
- 251
7,254
Trade and other receivables
3,331
- 345
2,986
Other receivables and accruals
8,406
-
8,406
Marketable securities
70
- 1
69
Cash and equivalents
15,533
15,533
Total assets
127,477
- 24,506
102,971
Share capital
39,791
Share premiums
29,801
Reserves
1,883
Currency translation differences
-
Income for the year
141
Total equity
71,617
Non-controlling interest
-
Provisions
1,334
Borrowings and financial liabilities
19,997
Trade and other payables
5,951
Other liabilities and accruals
4,073
Total equity and liabilities
102,971
Cash flow statement In thousands of euros
2021.12
Total net income from consolidated
companies
158
Depreciation, amortization and
provisions
4,226
Change in deferred tax
-11
Capital gains/(losses) on disposals
- 164
Cash flow from operations
4,209
Change in inventories
-1,056
Change in trade receivables
3,488
Change in financial and other current
liabilities
-1,905
Change in working capital
requirement
527
Net cash generated by operating
activities
4,735
Purchases of non-current assets
-3,213
Disposals of non-current assets
168
Impact of changes in the scope of
consolidation:
-1,461
Net cash generated/(used by) investing
activities
-4,506
Capital increases/(reductions)
39,353
New borrowings
225
Repayments of borrowings
-24,413
Net cash generated by financing
activities
15,165
Change in cash
15,395
Cash at beginning of year
0
Cash at end of year
15,395
1 Organic growth only, no changes in the reporting entity
during the year
2 Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) reflects the sources of funds generated by
the Group’s operations, including other operating revenue and other
operating expense, but excluding depreciation, amortization and the
impact of the Group’s financing policy.
3 The audited consolidated balance sheet as of December
31, 2021 includes the consolidated results for the period from
March 8, 2021 to December 31, 2021
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220419005836/en/
Groupe Berkem Olivier Fahy,
Chief Executive Officer Anthony Labrugnas, Chief Financial Officer
Tel.: +33 (0)5 64 31 06 60 berkem@berkem.com
NewCap Investor Relations
Mathilde Bohin / Nicolas Fossiez Tel.: +33 (0)1 44 71 94 94
Berkem@newcap.eu
NewCap Media Relations
Nicolas Merigeau Tel.: +33 (0)1 44 71 94 94 Berkem@newcap.eu
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