EXEL Industries: 2022–2023 full-year results
21 Diciembre 2023 - 1:13AM
EXEL Industries: 2022–2023 full-year results
|
2022–2023 full-year results A record year boosted
by an exceptional second half |
- For the first time in its history,
EXEL Industries exceeded €1 billion in
revenue, up 12.0%.
- The Group returned to profitability
levels equivalent to those of 2021, with full-year
recurring EBITDA totaling nearly €94 million, giving a
margin of 8.6%.
- Net income amounted to
€42.5 million, heavily impacted by a net financial
expense.
- A dividend of
€1.57 per share will be proposed to the
Annual General Meeting on February 6, 2024.
- Despite a persistent inflationary
environment, the Group focused on debt reduction, generating over
€43 million in cash flow.
|
Full-year results(October 1, 2022 –September 30,
2023) |
2021–2022(€m) |
2022–2023(€m) |
|
|
H1 |
H2 |
Full-year |
H1 |
H2 |
Full-year |
|
SALES |
406.9 |
570.2 |
977.0 |
483.1 |
611.2 |
1,094.3 |
|
RECURRING EBITDA* |
17.4 |
42.5 |
59.9 |
29.0 |
64.8 |
93.8 |
|
% of sales |
4.3% |
7.5% |
6.1% |
6.0% |
10.6% |
8.6% |
|
CURRENT OPERATING INCOME (EBIT) |
7.2 |
30.1 |
37.2 |
15.8 |
51.0 |
66.8 |
|
% of sales |
1.8% |
5.3% |
3.8% |
3.3% |
8.3% |
6.1% |
|
Non‐recurring items |
(1.9) |
0.2 |
(1.7) |
0.1 |
3.8 |
3.9 |
|
Net financial income/(expense) |
0.3 |
0.7 |
1.0 |
(8.3) |
(1.8) |
(10.1) |
|
Tax and share of profit of associates |
(3.6) |
(4.4) |
(8.0) |
(3.4) |
(14.7) |
(18.1) |
|
NET INCOME |
1.9 |
26.7 |
28.6 |
4.2 |
38.3 |
42.5 |
|
% of sales |
0.5% |
4.7% |
2.9% |
0.9% |
6.3% |
3.9% |
|
NET FINANCIAL DEBT (NFD) |
- |
- |
(160.5) |
- |
- |
(117.3) |
|
LEVERAGE (NFD / RECURRING EBITDA) |
- |
- |
2.7 |
- |
- |
1.3 |
|
GEARING (NFD / SHAREHOLDERS’ EQUITY) |
- |
- |
38.2% |
- |
- |
26.4% |
* 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
Annual revenue
2022–2023
|
Revenue12 months(October
2022–September 2023) |
2021–2022 |
2022–2023 |
Change (reported) |
Change (LFL**) |
|
Reported |
Reported |
€m |
% |
€m |
% |
| |
|
|
|
|
|
|
| AGRICULTURAL
SPRAYING |
442.3 |
525.2 |
+82.9 |
+18.7% |
+85.3 |
+19.3% |
| SUGAR BEET
HARVESTERS |
146.3 |
158.6 |
+12.3 |
+8.4% |
+16.0 |
+10.9% |
| LEISURE
|
138.9 |
143.6 |
+4.7 |
+3.4% |
-1.2 |
-0.9% |
| INDUSTRY
|
249.5 |
266.8 |
+17.3 |
+6.9% |
+20.1 |
+8.1% |
| |
|
|
|
|
|
|
|
EXEL Industries Group |
977.0 |
1,094.3 |
+117.3 |
+12.0% |
+120.2 |
+12.3% |
** Like-for-like (LFL) = at constant foreign
exchange rates and scope
Full-year 2022-2023 sales amounted to
€1.1 billion, up 12.0%. EXEL
Industries’ growth at constant foreign exchange rates and scope was
12.3%. This performance was underpinned by price
increases during the year and by strong volumes in the Agricultural
Equipment and Industry segments, while the garden market
experienced a downturn this year.
The scope effect represents €8.1
million in revenue over the 2022–2023 fiscal year,
reflecting the acquisitions of G.F. in February 2022 and Devaux in
June 2023.
Financial performance
Recurring EBITDA rose to €93.8 million,
or 8.6% of Group revenue, compared to €59.9 million or
6.1% of sales in FY 2021-2022.
Several factors explain this increase:
- First, volume
increases in Agricultural Spraying and Industrial Spraying partly
offset the slowdown in the Garden segment.
- Second, in
Agricultural Spraying, the Garden business and, to a lesser extent,
Industrial Spraying, price rises offset increases in production
costs and overheads.
At €42.5 million, net
income returned to a level close to that of 2020–2021 and
was well above that of 2021–2022, which amounted to €28.6 million.
Despite strong EBITDA growth and net non-recurring income, the
Group’s net income was heavily impacted by the net financial
expense and a higher tax expense than in 2021–2022.
Net income includes the following items:
- Net
non-recurring income of €3.9 million, almost all of which
was generated in the second half, and which mainly comprised a
property insurance payout and the consequences of changes in the
scope of consolidation during the fiscal year.
- Net
financial expense of €10.1 million, including cost of debt
(higher interest rates) and other financial expenses totaling
around €6 million. Moreover, the negative trend in foreign exchange
rates, particularly the euro against the US dollar, had a
significant impact on results, amounting to a €4.1 million loss. In
2021–2022, changes in exchange rates positively impacted the Group
in the amount of €4.5 million.
- A recognized
tax expense of €19.0 million, in line with the
trend in current operating income before tax and exceeding
2021-2022 levels, an exceptionally low year.
Balance sheet
Net financial debt (NFD) amounted to
€117.3 million at September 30, 2023, compared to €160.5
million in 2022. Temporary factors (higher EBITDA and lower working
capital) allowed 2022–2023 leverage (NFD/recurring EBITDA) to
improve and return to 1.3.
In addition, the Group pursued an ambitious
investment policy for the ongoing modernization of its plants,
which it shall continue in 2023–2024 with the start of work at its
Stains plant in France (Industry).
While EXEL Industries experienced a sharp
increase in working capital in 2021–2022, working capital improved
in 2022–2023, despite significant business growth.
Lastly, EXEL Industries’ lines of credit are
more than sufficient to meet its needs and are systematically
renewed in line with CSR criteria.
Governance
At the Board of Directors’ meeting of December
20, 2023, Daniel Tragus was appointed to succeed Yves Belegaud as
Chief Executive Officer of EXEL Industries. Yves Belegaud, who had
headed the Group since 2019, had announced to the Board of
Directors his intention to retire as from January 2024. The
transition therefore went smoothly.
Dividend
A dividend of €1.57 per
share, corresponding to 25% of consolidated net income,
will be proposed to the Annual General Meeting on February 6,
2024.
Audit process
The Group Audit Committee met on December 19, 2023.
The Board of Directors met on December 20, 2023,
and approved EXEL Industries’ annual and consolidated financial
statements for the year ended September 30, 2023.
The Group’s Statutory Auditors have finished
certifying the annual and consolidated financial statements and
will shortly issue a report without reservations.
Sustainable development
The 2022–2023 fiscal year saw major advances in
the identification of ESG challenges and their inclusion in EXEL
Industries’ strategy. The Group has drawn up materiality matrices
and carbon assessments covering all its business lines. Initially
conducted at company level, the approach was then aggregated by
division and at Group level in order to implement the appropriate
policies.
2023-2024 outlook
-
AGRICULTURAL SPRAYING
- Orders taken in recent months
provide clear visibility across all brands and regions over the
2023–2024 fiscal year. The order book, although lower than at the
same time last year, remains strong and should enable us to record
fairly similar seasonal revenue trends to those of 2022–2023.
However, the downturn in agricultural prices and rising interest
rates are prompting farmers to be more cautious.
- SUGAR
BEET HARVESTERS
- Two factors
boosted sales of new machines in 2022–2023.
- First, sugar prices have been at
record highs since the spring and currently appear to be remaining
steady at these levels, restoring farmers’ confidence.
- Second, the exceptional replacement
of machines in Eastern Europe, at a time when exchange rates were
favorable for farmers, was a windfall that is unlikely to recur in
2023–2024.
-
LEISURE
- Since the beginning of January
2023, volumes have declined in the watering market in France and
the United Kingdom. Subject to more favorable weather conditions,
2024 should see a return to volume growth after two consecutive
years of decline.
- The process of integrating Devaux
has started: as the season was already well underway at the time of
the acquisition, efforts are focusing on improving industrial
processes in line with Group standards.
-
INDUSTRY
- The order book for Industrial
Spraying remains well-stocked overall and should gain further
traction thanks to the start of new works projects in North America
in 2024. In Asia, and particularly in China, the wood market is
expected to contract, while growth in the automotive sector is set
to continue, bolstered by major investments linked to
electrification.
- Few changes are expected in the
hoses market.
Yves Belegaud, Chief Executive Officer of the EXEL
Industries Group until December 20,
2023
| |
“I am leaving EXEL Industries, proud to have achieved an excellent
final year. After suffering in 2022 due to the economic
environment, component shortages and a quick and strong inflation
that penalized the Group’s economic results last year, EXEL
Industries has successfully returned to healthier management of its
balance sheet. I am convinced that Daniel Tragus will leverage his
leadership and intimate knowledge of the Group in pursuing this
strategy of profitable, cash-generating growth.” |
Daniel Tragus, Chief Executive Officer of
the EXEL Industries Group since December 20,
2023
|
“In a challenging market environment, albeit less inflationary but
still causing disruption to our production lines, EXEL Industries
has successfully prioritized the pursuit of organic and external
growth, strict cost management and debt reduction. Backed by a
persistently robust order book, and despite some signs of a
slowdown in the agricultural sector, I am confident in the Group’s
prospects and fundamentals, driven by an ambitious Corporate Social
Responsibility policy and committed teams.” |
|
View the full-year results of the EXEL Industries Group
at
https://www.exel-industries.com/investor-page/?lang=en
Upcoming events
- January
25, 2024, before market opening: Q1 2023-2024 revenue
- February
6, 2024: Annual General Meeting of Shareholders
- April
24, 2024, before market opening: Q2 2023-2024 revenue
- EXEL Industries_Press release_2022-2023 annual results_EN
Exel Industries (EU:EXE)
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Exel Industries (EU:EXE)
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