Manitou Group: 2021 Half-year results

• H1 21 net sales of €970m, up +27% vs. H1 20 and +30% like for like*
• Q2 21 order intake on equipment of €858m vs. €180m in Q2 20
• Order book on equipment at the end of H1 21 of €1788m vs. €555m in H1 20
• H1 recurring operating income at €85.0m (8.8%) vs. €30.1m (3.9%) in H1 20
• Net income at €64.2m vs. €13.5m in H1 20
• EBITDA** €110m (11.3%) vs. €48m (6.3%) in H1 20
• A €15m surplus cash position over the debt***
• Outlook for a growth of 2021 annual revenue of around +20% compared to 2020
• Outlook for an annual growth of recurring operating income rate of around 130 basis points compared to 2020

The Board of Directors of Manitou BF, meeting on this day, closed the accounts for the first half of 2021. Michel Denis, Chief Executive Officer, said : "In a context of a strong rebound in activity, we closed the first half of the year with a level of performance that exceeded our objectives and a depth of order book that we had never experienced. This dynamism was recorded in all markets and geographies, characterised by an historical acceleration in order intake, high billings and an exceptional backlog at the end of June of €1.8 billion.

To meet the high demands of our customers, all the teams have been mobilised. Production rates are gradually being ramped up despite significant supply chain tensions.

In the first half of the year, we have a high net sales sequence with purchase prices only slightly impacted by the announced price increases and operating costs under control, resulting in a peak of the recurring operating income of 8.8% of net sales, i.e. €85 million, as much as for the full year of 2020, a very good performance reinforced by a positive cash position at the end of June.

This sudden rebound in the markets is supported by very high inflation in our purchases, particularly in steel and transport, which will impact our financial performance in the second half of the year.

For the rest of the year, our sales are expected to be stronger than initially forecasted, but below our customers' demand. In addition, raw material increases will be fully implemented while our sales price adjustments will only bear fruit over the end of the year and the first half of 2022. This configuration will have a substantial squeeze on the margin in the second half of 2021.

This sequence will allow us to deliver a strong improvement in our performance in 2021 compared to 2020, and leads us to upgrade our revenue growth outlook for the year of around 20% compared to 2020 (previously more than 15%) as well as to upgrade our recurring operating margin growth expectation for the year of around 130 basis points compared to 2020 (previously more than 40 basis points)."

Sales trend

Review by division

The Product Division (grouping of the former MHA and CEP divisions) achieved a revenue of €802.8 million, up 29.5% over 6 months compared to a 2020 baseline strongly impacted by the Covid 19 crisis (+ 32% at constant exchange rates and scope). The Product division benefited from the rebound seen at the end of 2020. Its revenue increased in all geographic areas, and more particularly in the Northern Europe and APAM areas, in all of its markets (construction, agriculture, industries).

The division finalized the implementation of the new organization and made considerable efforts to increase the production rates. A major renewal of its range of construction equipment has been launched.

The recurring operating income of the Product division increased by €54.4 million (+ 418.1%) to reach €67.4 million (8.4% of sales) compared to €13.0 million in the first half of 2020 (2.1% of sales).

With a revenue of €167 million, the Services & Solutions Division (S&S) recorded an increase of 17.6% over 6 months (+ 19% at constant exchange rates and perimeter). Activity grew in all geographic areas and more particularly in the APAM area, and in all of its markets, with the exception of service activities which were more resilient in 2020.

Recurring operating income amounts to €17.6 million (10.5% of sales), up €0.5 million compared to the first half of 2020 (€17.1 million, or 12.0% of revenue).