The group achieved another record semester with revenue growth of 24% compared to H1 2018 and a recurring operating income of 7.7%, up 100 basis points compared to H1 2018.
Michel Denis, Chief Executive Officer, said: "Over the first half of the year, business was very strong in our three markets of construction, industry and agriculture, as well as in almost all geographical areas. High production levels made it possible to sell the excess order book that the group had accumulated at the end of 2018.
This performance contrasts with order intake, which is now showing a decline. A difficult-to-quantify part of this decrease is due to the return to normal delivery times, which prevent our customers from having to anticipate their orders well in advance. Another part is due to a significant drop in some markets such as the United Kingdom or South Africa, as well as a more uncertain global economic environment with no visible signs of improvement in the short term.
The group is reducing its production volumes and gradually limiting its structural costs and investments.
Given the historical invoicing level for the first half of the year, our expectations for 2019 of revenue growth of more than 10% compared to 2018 and recurring operating income in the order of 7.3% of revenue, remain confirmed.
All teams are still committed to continuing the group's strengthening and transformation projects."
|
MHA |
CEP |
S&S |
Total |
MHA |
CEP |
S&S |
Total |
||
|
In millions of € |
H1 18 |
H1 18 |
H1 18 |
H1 18 |
H1 19 |
H1 19 |
H1 19 |
H1 19 |
Var. |
|
Net sales |
653,4 |
151,5 |
136,6 |
941,5 |
829,9 |
178,4 |
155,2 |
1 163,5 |
+24% |
|
Sales margin |
96,3 |
20,0 |
37,4 |
153,6 |
124,1 |
24,4 |
43,9 |
192,4 |
+25% |
|
Sales margin as a % of sales |
14,7% |
13,2% |
27,4% |
16,3% |
15,0% |
13,7% |
28,3% |
16,5% |
|
|
Recurring Operating Income |
48,2 |
3,6 |
11,2 |
63,0 |
71,6 |
3,9 |
14,6 |
90,1 |
+43% |
|
Recurring Op. Income as a % of sales |
7,4% |
2,4% |
8,2% |
6,7% |
8,6% |
2,2% |
9,4% |
7,7% |
|
|
Operating Income |
47,2 |
3,6 |
11,2 |
61,9 |
71,0 |
3,7 |
14,4 |
89,1 |
+44% |
|
Net income attributable to the group |
n/a |
n/a |
n/a |
40,7 |
n/a |
n/a |
n/a |
59,7 |
+47% |
|
Net debt excluding IFRS 16 |
79,8 |
185,4 |
+132% |
||||||
|
Net debt including IFRS 16 |
n/a |
201,4 |
|||||||
|
Shareholder's equity |
551,6 |
625,4 |
+13% |
||||||
|
% Gearing2 excluding IFRS 16 |
14% |
30% |
|||||||
|
% Gearing2 including IFRS 16 |
n/a |
32% |
|||||||
|
Working capital |
451 |
596 |
+32% |
Half-year financial statements and Statutory Auditors' review report available online on the company website (in French)
Auditing procedures performed
* at constant exchange rates: application of the exchange rates of the previous year on the aggregates of the current year
** at constant accounting standard (IAS17)
1 EBITDA: Earnings before interest, taxes, depreciation, and amortization (on 6 months)
2 Gearing : Financial ratio measuring the net debt divided by shareholders' equity.
Sales trend
|
Sales by division |
||||||
|
In million of euros |
Quarter |
Half-year |
||||
|
Q2 2018 |
Q2 2019 |
% |
H1 2018 |
H1 2019 |
% |
|
|
MHA |
331 |
433 |
31% |
653 |
830 |
27% |
|
CEP |
80 |
94 |
17% |
151 |
178 |
18% |
|
S&S |
69 |
75 |
9% |
137 |
155 |
14% |
|
Total |
480 |
602 |
25% |
941 |
1 163 |
24% |
|
Sales by region |
||||||
|
In million of euros |
Quarter |
Half-year |
||||
|
Q2 2018 |
Q2 2019 |
% |
H1 2018 |
H1 2019 |
% |
|
|
Southern Europe |
144 |
184 |
28% |
301 |
398 |
32% |
|
Northern Europe |
195 |
247 |
27% |
370 |
454 |
23% |
|
Americas |
92 |
117 |
26% |
169 |
209 |
24% |
|
APAM |
49 |
53 |
8% |
102 |
103 |
1% |
|
Total |
480 |
602 |
25% |
941 |
1 163 |
24% |
Review by division
The MHA - Material Handling & Access Division achieved half-year revenue of €830m, an increase of +27% compared to H1 2018, +27% also at constant exchange rates. Growth was very strong in all markets, with significant business with European rental companies.
Faced with the slow-down in demand, all production sites are organizing themselves to adjust their capacities, a situation for which they had made part of their direct and indirect means of production more flexible.
Recurring operating income represented 8.6% of revenue, up 120 basis points compared to H1 2018.
The CEP - Compact Equipment Products Division achieved revenue of €178m, a rise of +18% compared to H1 2018, +12% at constant exchange rates.
During the first half of the year, business was buoyant, particularly with North American rental companies. The division continues to be impacted by the evolution of the dollar, which increases the cost of its exports outside the United States. In order to adapt to a less favourable environment, the division has initiated an adjustment of its production capacities on its American sites.
The division's recurring operating income was positive at 2.2% of revenue and 2.9% at constant exchange rates, compared with 2.4% in H1 2018.
With a turnover of 155 M€, the Services & Solutions Division (S&S) recorded a +14% increase in its activity, +13% at constant exchange rates boosted by the used equipment sales service activities.
In addition, the division continues to work on strengthening the supply of connected machines and sales financing.
The recurring operating income to revenue ratio was 9.4%, up 120 basis points compared to H1 2018.
ISIN code: FR0000038606
Indices: CAC ALL SHARES, CAC ALL-TRADABLE, CAC INDUSTRIALS, CAC MID&SMALL, CAC PME, CAC SMALL,
EN FAMILY BUSINESS, ENT PEA-PME 150
Appendix
Impact of the application of IFRS 16:
IFRS 16 is the new standard for leases, with first application as of 1 January 2019.
The group recognizes a "right of use" and a rental liability at the start date of the lease, respectively booked in the asset and liability sides of its balance sheet.
The group has applied the simplified retrospective method with the calculation of the right of use from the outset for contracts ongoing on January 1, 2019. Therefore, the previous year's figures are not displayed with restated values.
|
In millions of € |
2019 published figures including IFRS 16 |
IFRS 16 Impact |
2019 figures excluding IFRS 16 |
|
Income statement |
|||
|
Operating income |
89,1 |
- 0,5 |
88,6 |
|
Of which EBITDA |
110,4 |
- 3,3 |
107,1 |
|
Of which amortization |
-21,6 |
+ 2,8 |
-18,8 |
|
Financial result |
-2,6 |
+ 0,6 |
-2,0 |
|
Consolidated balance sheet |
|||
|
Right of use |
14,4 |
- 14,4 |
0 |
|
Net debt |
201,4 |
- 16,1 |
185,4 |
|
Gearing |
32,1 % |
29,7 % |
|
Definitions :
- EBITDA restated from the IFRS 16 impact
EBITDA calculated on the basis of IFRS standards applicable in 2018, i.e. before the application of IFRS 16 (from
1 January 2019)
- Net debt and Gearing excluding IFRS 16
Net debt calculated on the basis of IFRS standards applicable in 2018, i.e. before the application of IFRS 16 (from
1 January 2019)
