ALLEX Lexibook Linguistic Electronic System SA

LEXIBOOK: FISCAL Q4 22-23 BETTER THAN EXPECTED AT €7.5M VS €8.4M IN Q4 21-22. HISTORIC ANNUAL SALES UP 13.3% to €51.2M vs. €45.2M THROUGH GROWTH IN FRANCE AND ABROAD. GOOD PROSPECTS FOR THE NEW FISCAL YEAR 2023-24.

LEXIBOOK: FISCAL Q4 22-23 BETTER THAN EXPECTED AT €7.5M VS €8.4M IN Q4 21-22. HISTORIC ANNUAL SALES UP 13.3% to €51.2M vs. €45.2M THROUGH GROWTH IN FRANCE AND ABROAD. GOOD PROSPECTS FOR THE NEW FISCAL YEAR 2023-24.

• Q4 fiscal activity remained very dynamic. After an exceptional Q4 21-22 with 175.8% growth, Q4 22-23 sales were better than expected at €7.5M vs. €8.4M in 21-22. For the full fiscal year, which grew by 66.3% in 21-22, sales rose by a further 13.3% to €51.2M vs. €45.2M a year earlier, whereas they were expected to be close to €50M.
• Sales growth was driven by toys, watches, musical instruments and walkie-talkies, thanks to new products under the Group's own brands and licensed products.
• Over the fiscal year, sales rose by 17% in the French market, which accounted for 38% of total sales. International sales are also growing, both on traditional networks and on the Internet, and have significant potential.
• The Group continued its communication campaign in Europe during the quarter, exceeding one billion digital impressions over its fiscal year.
• Q1 22-23, which was already up 78.2% in 21-22, is expected to be close to this level in the new year, and augurs a new year of profitable growth for Lexibook. The Group could benefit from the current level of the U.S. dollar if it remains at this level for the rest of the year and from the improvement in international freight conditions to improve its margins.

Lexibook (ISIN FR0000033599) announces today its turnover (unaudited) for the period ending March 31, 2023 (period from April 1er 2022 to March 31, 2023).

Consolidated revenues (M€)	2021/2022	2022/2023	Var
1st quarter	5,08	6,93	+36,4%
Of which FOB	1,31	2,22
Of which Non FOB	3,77	4,71
2nd quarter	9,82	13,4	+36,5%
Of which FOB	2,96	4,32
Of which Non FOB	6,86	9,08
3rd quarter	21,86	23,41	+7,1%
Of which FOB	2,58	0,72
Of which Non FOB	19,28	22,69
4th quarter	8,44	7,49	-11,3%
Of which FOB	1,35	1,87
Of which Non FOB	7,09	5,62
Total 12 months	45,2	51,2	+13,3%

After a very dynamic first half of fiscal year 22-23 with growth of 36.4% and a third quarter 22-23 also up 7%, the last quarter of the fiscal year, which was already up 175.8% in 21-22 due to the saturation of the ports at the end of 2021, was higher than the Group's expectations at €7.49M vs €8.44M in 21-22 (-11.3%).  This sustained level of activity is linked to the excellent consumption of Lexibook products during the Christmas season in all the countries where the Group operates, and in most of its main segments. Customers restocked on discontinued products at Christmas and put in place a wider assortment than in previous years on new permanent ranges.

For the full year, sales reached €51.2 million, up 13.3%, a historic level for the Group. FOB sales (sales invoiced directly from HK on FOB HK deliveries by full containers) and non-FOB sales are both up, reflecting the popularity of the Group's products among international distributors.

 Over the full fiscal year, France accounted for 38% of sales and grew by 17%. The international market is also driving growth and has significant growth potential.

In terms of products, sales growth was driven by toys, watches, musical instruments and walkie-talkies, thanks to new products under the Group's own brands and licensed products. Sales growth was spectacular in toys, up 29%, and now representing 44% of total sales, with the success of the Powerman® robot ranges, Crosslander® radio-controlled vehicles, as well as educational products and electronic games. Alarm clocks, audio and music products are also particularly popular, with growth of +12%, +10% and +10% respectively.

Licensed products also contributed to this growth, both on existing, very dynamic licenses such as The Snow Queen, Patrol, Spiderman and on new licenses such as Super Mario, Miraculous, and Harry Potter.

Finally, the Group's digitalization is bearing fruit: digital sales are up sharply both in France and in the various European markets, thanks in particular to a massive, Europe-wide digital marketing campaign on the Group's new products. This campaign generated more than one billion digital impressions of the Group's products, mainly in Europe, and helped to strengthen the Lexibook brand's reputation to an unprecedented level.

Perspectives

The Group presented its 2023 collections to international retailers and the response to the new products was very positive. The listings for the 2023 Christmas campaign are excellent and suggest that the 2023-24 fiscal year will be in line with 22-23. Q1 fiscal 22-23 was up 36% on Q1 fiscal 21-22, which was itself up 78%. The benchmark is therefore high for fiscal Q1 2023-24. Nevertheless, the order book suggests a similar level of activity to last year in Q1 2023-24 and the Group intends to continue its momentum of profitable growth this year.

Several extensions of license agreements are being finalized to extend current contracts into new areas, which could have an accelerating effect on the Group over the next few years.

The Group could also benefit from the current level of the U.S. dollar if it remains at this level for the rest of the year and from the improvement in international freight conditions to improve its margins.

Financial calendar 2022/2023

• Annual results to March 31, 2023: June 30, 2023

About Lexibook

Lexibook®, owner of more than 40 registered brands such as Powerman®, Decotech®, Karaoke Micro Star®, Chessman®, Cyber Arcade®, Lexitab®, iParty®, FlashBoom®, etc., Lexibook® is the leader in smart electronic entertainment products for children. This success is based on a proven strategy of combining strong international licenses with high value-added consumer electronics products. This strategy, complemented by a policy of constant innovation, allows the group to flourish internationally and to continuously develop new product ranges under the Group's brands. With more than 35 million products on the market, the company now sells a product every 10 seconds worldwide! Lexibook's share capital is composed of 7,763,319 shares listed on the Alternext market in Paris (Euronext). ISIN: FR0000033599 - ALLEX; ICB: 3743 - Consumer electronics. For more information: www.lexibook.com and www.decotech-lights.com.

Contacts

LEXIBOOK David Martins - CFO - 01 73 23 23 45 / davidmartins@lexibook.com

Attachment

• Communique T4 2022-2023 Turnover en-US