ALLEX Lexibook Linguistic Electronic System SA

LEXIBOOK: HISTORIC FISCAL SALES FOR Q3 2023-24 OF €30M, UP 28.2%. OVER 9 MONTHS, SALES UP 19.2%. FULL-YEAR SALES AND EARNINGS EXPECTED TO REACH RECORD LEVELS. GOOD PROSPECTS FOR 2024-25.

Les Ulis, February 6, 2024 at 7:00 a.m.

LEXIBOOK: HISTORIC FISCAL SALES FOR Q3 2023-24 OF €30M, UP 28.2%. OVER 9 MONTHS, SALES UP 19.2% THANKS TO HIGHER SALES IN FRANCE AND INTERNATIONALLY, PARTICULARLY OF NEW INTELLIGENT TOYS AND LICENSED PRODUCTS. FULL-YEAR SALES AND EARNINGS EXPECTED TO REACH RECORD LEVELS. GOOD PROSPECTS FOR 2024-25.

• Sales for Q3 2023-24 rose by 28.2% to €30M vs. €23.41M for Q3 2022-2023. Cumulative sales for the 2023-24 fiscal year to date are up 19.23% to €52.15M vs. €43.74M over 9 months.
• This quarter follows 18 consecutive quarters of growth, once again validating the Group's strategic choices to position itself in buoyant segments, notably electronic and musical toys, alarm clocks, educational products and cameras. Lexibook thus consolidates its position as European leader in its major segments.
• The Group ran a major new communications campaign in Europe and its first digital campaign in the United States during the quarter. These campaigns literally boosted Christmas sales and restocking.
• The first sales of licensed products in the USA have doubled business in the region, pointing to sustained sales growth in 2024.
• Customer deliveries were carried out under optimum conditions, enabling us to rationalize logistics costs and satisfy our customers.
• Even if Q4 2023-24 is expected to be down as announced, given the exceptional quarter achieved in Q4 2021-22 and 2022-23, annual sales for the Lexibook Group over the full fiscal year are nevertheless expected to reach a record level, in excess of €56 million.
• Lexibook should therefore close its fiscal year with record operating profit and net income.

Lexibook (ISIN FR0000033599) today announced its sales (unaudited) for the period ending December 31, 2023 (period from April 1er to December 31).

Consolidated revenues (M€)	2021/2022	2022/2023	Var	2023/2024	Var
1st quarter	5,08	6,93	36,42%	7,01	+1,15%
Of which FOB	1,31	2,22	69,47%	2,21	-0,45%
Of which Non FOB	3,77	4,71	24,93%	4,8	+1,91%
2nd quarter	9,82	13,4	36,46%	15,13	+12,91%
Of which FOB	2,96	4,32	45,95%	2,85	-34,03%
Of which Non FOB	6,86	9,08	32,36%	12,28	+35,24%
3rd quarter	21,86	23,41	7,09%	30,01	+28,19%
Of which FOB	2,58	0,72	-72,09%	0,88	+22,22%
Of which Non FOB	19,28	22,69	17,69%	29,13	+28,38%
					+19,23%
Total 12 months	45,2	43,74	-3,23%	52,15

After a very dynamic first half of fiscal 2023-24, with growth of 8.9%, the third quarter of 2023-24, traditionally the year's biggest contributor to sales, saw an acceleration in growth. Growth was 28.19%.

Star products continued to perform well, and the Group benefited from the launch of numerous new products in its main segments. Product consumption was excellent: Lexibook's case releases on all networks benefited from massive communication campaigns in EMEA and the USA, generating over a billion digital impressions in 2023 alone.

Growth was widespread across all the most profitable product families, including electronic and musical toys, educational products, cameras, clocks and walkie-talkies. Licensed products also contributed to this growth, both on existing, highly dynamic licenses such as Snow Queen, Patrol and Spiderman, and on new licenses such as Super Mario, Miraculous and Harry Potter. Less profitable tablet sales are now being replaced by sales in higher-margin segments.

In addition to the French market, the strong growth in sales is also widespread in all the countries in which the Group is positioned internationally. FOB sales (sales invoiced directly from HK on FOB HK deliveries by full containers) rose by 22.22%, thanks to long-standing customers and the winning of new international accounts. Non-FOB sales nevertheless accounted for the bulk of sales in the quarter, and rose by 28.38%, reflecting the dynamic international sales of Lexibook products.

Last but not least, the Group's digitalization drive is bearing fruit: digital sales are up sharply both in France and in other European markets.

Tensions on component supplies and freight were completely lifted over the period, enabling the Group to ensure its deliveries under optimal conditions from both a logistical and a financial point of view. This optimized logistics enabled us to provide customers with a service in line with their expectations for the Christmas season, while optimizing the Group's inventory levels.

Outlook

Q4 is traditionally a low-contribution quarter in terms of sales. In 2021-22 and 2022-23, due to catch-up deliveries made in January and February after the saturation of ports for the Christmas season, sales were exceptionally high. Q4 2023-24 is therefore logically expected to decline, as announced. Nevertheless, annual sales for the Lexibook Group over the full fiscal year are expected to reach a record level, in excess of €56 million.

This level of activity, coupled with the rebound of the euro and sterling against the US dollar over the year, will directly benefit the Group's margins and financial results. Lexibook should therefore close its fiscal year with record operating income and net income .

The Group also exhibited its 2024 collections at the London and Nuremberg toy fairs. The response was very positive, and augurs well for business in 2024-25 in the wake of 2023-24.

Lastly, Isabelle Marée joins the Group effective immediately as Finance and Administration Director.

Financial calendar 2023/2024

• Q4 2023-2024 sales: May 15, 2024
• Annual results to March 31, 2024: June 28, 2024
• Availability of the Universal Registration Document on March 31, 2024: June 28, 2024

About Lexibook

Lexibook®, owner of more than 22 registered international brands such as Powerman®, Decotech®, Karaoke Micro Star®, Chessman®, Cyber Arcade®, Lexitab®, iParty®, FlashBoom®, etc., is the leader in intelligent electronic leisure 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, enables the Group to flourish internationally and to constantly develop new product ranges under the Group's brands. With over 35 million products on the market, the company now sells a product every 10 seconds worldwide! Lexibook's share capital is made up of 7,763,319 shares listed on the Alternext market in Paris (Euronext). ISIN: FR0000033599 - ALLEX; ICB: 3743 - Consumer electronics. For further information: www.lexibook.com and www.decotech-lights.com.

Contact

LEXIBOOK Isabelle Marée - DAF - 01 73 23 23 45 / isabellemaree@lexibook.com

Attachment

• Communique CA T3 2023-2024 en