Manitou Group: 2022 Half-year results

Michel Denis, Chief Executive Officer, said : "Thanks to a strong acceleration of our production and deliveries in the second quarter, the Group closed the half-year with a 9% growth in revenues compared to June 2021. Our supply chain continues to be disrupted by capacity, availability and shipping problems, which continues to encourage our customers to secure their future supplies by taking orders at a consistently high level, which is reflected in our order book.

The sudden acceleration of inflation, particularly for steel, has led to a significant deterioration in margins. The measures put in place to deal with are having an effect, but gradually, given the depth of our order book. In addition, the Services & Solutions division has confirmed its strong development and operational performance.

The teams are very committed to adapting to these operational and inflationary constraints while remaining fully mobilized on our major challenges of energy, industrial, digital and service transformation. For the first half-year, recurring operating income stood at 4.3% of revenues, down sharply from the profitability achieved in June 2021, which was the highest level since 2008.

For the 2022 fiscal year, we maintain our expectation of revenue growth in excess of 20% compared to 2021. This expectation does not include any assumption of restricted access to energy. In addition, the strong uncertainties regarding raw material inflation and, more generally, the economic context do not allow us to anticipate our operating margin level for the 2022 fiscal year at this time."

/ Revenues evolution

/ Review by division

The Product Division reported revenues of €866 million, up 8% over six months compared to a base year of 2021, which had seen a strong rebound (+5% at constant scope and exchange rates). However, this growth was slowed by supply chain tensions and the health crisis at the beginning of the year. In order to limit the effects of inflation, the Group integrated mechanisms to adjust its sales prices upon delivery during H1 2022. These mechanisms will influence the valuation of the orderbook on equipment, which is booked and valued at the price on the day the order is placed.

Recurring operating income for the Product division fell by €44.5 million (-66%) to €22.8 million (2.6% of revenues), compared with €67.4 million in H1 2021 (8.4% of revenues).

With revenues of €191 million, the Services & Solutions Division (S&S) grew by 14% over six months (+11% at constant scope and exchange rates). The division benefited from very strong demand from its markets, enabling it to achieve a historic level of activity. Sales increased in all geographic regions, particularly in the Americas, and in all its markets.

Recurring operating income was €22.9 million (12.0% of revenues), up €5.4 million compared with the first half-year of 2021 (€17.6m, or 10.5% of revenues).

/ Evolution of the Executive Committee

Christine Prat was appointed on July 4 as the new Executive Vice President of Human Resources of the group, member of the Executive Committee. Graduated of EISTI, she has both experiences, having held Supply Chain & Customer Service management positions before building her professionalism as HR Director.

The common thread that runs through her career - more than 15 years of Human Resources management in the food industry (Danone) and high tech (SalesForce, Diebold Nixdorf) - is the constant search for the development of the full potential of teams in the service of the company's development, in contexts of strong transformation.