LECTRA: First nine months of 2022: very strong growth in revenues
and earnings
First nine
months of
2022: very
strong growth in revenues and
earnings
- Revenues: 392.1 million euros
(+50%)
- EBITDA before non-recurring items:
74.9 million euros (+73%)
- Net income: 35.4 million euros
(multiplied by 2.1)
- Free cash flow before non-recurring
items: 31.6 million euros
|
|
|
In millions of euros |
July 1 – September 30 |
January 1 – September 30 |
|
2022 |
2021 |
2022 |
2021 |
Revenues |
141.2 |
115.3 |
392.1 |
262.0 |
Change at actual exchange rates (%) |
+22% |
|
+50% |
|
EBITDA before non-recurring items(1) |
29.7 |
20.1 |
74.9 |
43.4 |
Change at actual exchange rates (%) |
+47% |
|
+73% |
|
EBITDA margin before non-recurring items (in % of revenues) |
21.0% |
17.5% |
19.1% |
16.5% |
Net income |
15.2 |
7.9 |
35.4 |
16.8 |
Change at actual exchange rates (%) |
+92% |
|
+111% |
|
Free cash flow before non-recurring items(1) |
16.9 |
19.3 |
31.6 |
33.6 |
Shareholders’ equity(2) |
|
|
475.2 |
400.8 |
Net cash (+) / Net financial debt (-)(1) (2) |
|
|
3.8 |
(8.8) |
|
|
|
|
|
(1) The definition of the key performance indicators
is shown in the September 30,2022 Financial Report(2) At
September 30, 2022 and December 31, 2021
Paris, October
25, 2022. Today,
Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the
consolidated financial statements for the third quarter and first
nine months of 2022, which have not been reviewed by the Statutory
Auditors.
To facilitate the analysis of the Group’s
results, the financial statements are compared to those published
in 2021 and to the 2021 pro forma financial statement ("2021 Pro
forma"), prepared by integrating the three acquisitions made in
2021 – Gerber Technology (“Gerber”), Neteven, and Gemini CAD
Systems (“Gemini”) – as if they had been consolidated from January
1, 2021, whereas they have been consolidated since June 1, July 28
and September 27, 2021 respectively.
- GREAT
RESILIENCY IN A DEGRADED ENVIRONMENT
The first nine months of the year were
significantly marked by the war in Ukraine and its consequences. As
soon as the conflict began, the Company decided to cease its
operations in Russia, by suspending the activity of its subsidiary
Lectra Russia and stopping all deliveries of products or services.
The Group's direct exposure to Ukraine and Russia is low; the
contribution of these two countries in 2021 accounted for less than
1 percent of revenues.
This war has accelerated price increases, energy
shortfalls and shortages in some raw materials. However, their
impact on the Group's financial statements was limited due to its
low exposure to energy costs and a limited dependency on those raw
materials affected the most.
The Group also adjusted sale prices to
compensate for the increase in its production costs in January and
in July.
In addition, the lockdown periods in China had a
negative impact on the amount of orders and revenues in this
country.
The climate of uncertainty since the year began
has been intensified more recently by growing fears of recession in
many countries.
These situations have led some of the Group’s
customers to reduce their investment budgets to cope with cost
increases, shortages, or potential reductions in activity, while
others are postponing purchasing decisions until their business
environment and visibility improve.
Finally, since the beginning of 2022, the dollar
has significantly strengthened against the euro. With an average
exchange rate of $1.06/€1 in the first nine months of 2022, the
dollar was up 12% compared to the first nine months of 2021. This
change and other currency changes mechanically increased revenues
by roughly 7%.
In this environment, the Group has once again
demonstrated its resiliency, with strong earnings growth.
- Q3
2022
In a particularly difficult macroeconomic
environment, orders for perpetual software licenses, equipment and
accompanying software, and non-recurring services (46.6 million
euros) decreased by 2% compared to the Q3 2021 Pro forma. The
annual value of new software subscription orders amounted to 2.0
million euros, up 1%.
Q3 revenues (141.2 million euros) increased by
22% (+22% compared to the 2021 Pro forma as well). In Q3, the Group
fully caught up with any delays in deliveries of equipment and
accompanying software caused by the long lockdown in China during
Q2.
EBITDA before non-recurring items (29.7 million
euros) increased by 47% and the EBITDA margin
before non-recurring items was 21.0% (+3.5 percentage points).
Compared to the 2021 Pro forma, EBITDA increased by 49% and the
EBITDA margin by 3.8 percentage points.
Net income (15.2 million euros) was multiplied
by 1.9 compared to Q3 2021.
Free cash flow before non-recurring items came
to 16.9 million euros (19.3 million euros in Q3 2021, which
included the 4.5-million-euro outstanding balance of the research
tax credit for 2017).
-
FIRST NINE
MONTHS OF
2022
The first nine months revenues (392.1 million
euros) were up 50%.
EBITDA before non-recurring items (74.9 million
euros) increased by 73% and the EBITDA margin before non-recurring
items was 19.1%.
Income from operations before non-recurring
items (52.8 million euros) was up 78%. This includes
an 8.7-million-euro charge for amortization of intangible
assets arising from the acquisitions of Gerber, Neteven and Gemini,
and of the activity of Glengo Teknoloji.
Net income (35.4 million euros) was multiplied
by 2.1.
Free cash flow before non-recurring items was
31.6 million euros, down slightly compared to the first nine months
of 2021 and lower than the net income of the same period due to a
temporary increase in working capital requirement.
Comparison to the 2021 Pro forma
The first nine months orders for perpetual
software licenses, equipment and accompanying software,
and non-recurring services (153.7 million euros) were up 5%
compared to the amount of 2021 Pro forma orders. The annual value
of new software subscription orders (6.2 million euros) increased
by 21%.
Despite the negative impact of the war in
Ukraine and the lockdown measures in China, revenues
(392.1 million euros) increased by 14% compared to the 2021
Pro forma. Revenues from perpetual software licenses, equipment and
accompanying software, and non-recurring services (160.0 million
euros) increased by 16%, those from recurring contracts (123.9
million euros) by 13% and those from consumables and parts (108.2
million euros) by 14%.
EBITDA before non-recurring items increased by
46% and the EBITDA margin before non-recurring items by 4.1
percentage points.
Balance sheet at September 30, 2022
At September 30, 2022, the Group had a
particularly robust balance sheet with a consolidated
shareholders’ equity of 475.2 million euros (400.8 million
euros at December 31, 2021) and a positive net cash position of 3.8
million euros.
The working capital requirement at September 30,
2022 was a negative 13.4 million euros.
- ASSESSMENT
OF THE 2020-2022 STRATEGIC ROADMAP
The Lectra 4.0 strategy was launched in 2017
with the aim of positioning the Group as a key Industry 4.0 player
in its markets before 2030. It has been implemented to date through
two consecutive strategic roadmaps. The second roadmap, for
2020-2022, was designed to enable Lectra to capture the full
potential of its new offers for Industry 4.0, while delivering
sustainable, profitable business growth.
The 2020-2022 strategic roadmap has been
conducted with success despite the consequences of
the COVID-19 crisis and a challenging macroeconomic and
geopolitical environment. Thanks to the acquisition made during
this period, Lectra’s corporate profile has changed compared to
2019, with a stronger than ever financial structure, an extended
global reach, an enlarged customer base, a reinforced product
portfolio incorporating more and more 4.0 technologies and a
revamped brand image. These major advances give Lectra a new
dimension with increased opportunities for continued growth.
For the detailed assessment of the strategic roadmap refer to
the financial report at September 30, 2022, published on October
25, 2022.
- BUSINESS
TRENDS IN 2022
In its 2021 Financial Report, published February
9, 2022, the Group indicated that the acquisitions made in 2021,
and particularly the acquisition of Gerber, give the Group a new
dimension and open new perspectives.
It further explained that uncertainties persist
regarding the evolution of the pandemic and its impacts on the
macroeconomic environment and could continue to weigh on investment
decisions by the Group’s customers. To those uncertainties have
been added the consequences of the war in Ukraine and of the strict
lockdown measures implemented in China in H1.
At the beginning of 2022, the Group set itself
objectives of achieving, in the current fiscal year, revenues in
the range of 508 to 556 million euros (+31% to +43%) and EBITDA
before non-recurring items in the range of 92 to 104 million
euros (+41% to +60%). These objectives had been prepared on the
basis of the closing exchange rates on December 31, 2021, and
particularly $1.13 to the euro.
On July 28, 2022, Lectra finetuned its
objectives for 2022: revenues in the range of 514 to 534 million
euros (+33% to +38%) and EBITDA before non-recurring items in the
range of 95 to 102 million euros (+46% to +57%), established on the
basis of the actual exchange rates in H1, and the rates on June 30,
2022, particularly $1.04/€1, for H2 2022.
The third quarter results enable Lectra to
confirm the revised targets announced on July 28.
The 2021 Annual Financial Report, as well as the
Management Discussion and Analysis of Financial Conditions and
Results of Operations and the financial statements for the first
nine months of 2022 are available on lectra.com. Q4 and FY 2022
earnings will be published on February 8, 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 388 million euros in 2021 and is
listed on Euronext Paris (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 – lectra.comA French Société
Anonyme with capital of €37,742,959 • RCS Paris B 300
702 305
- Lectra_PressRelease_Q32022
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