LEXIBOOK: 2023-24 ANNUAL RESULTS IN LINE WITH EXPECTATIONS: ANNUAL
SALES AT €58.6M (+14.4%). EBIT AND NET RESULT UP RESPECTIVELY TO
+6.0M€ AND +5.0M€ THANKS TO AN EXCEPTIONAL CONJUNCTION OF POSITIVE
FACTORS.
Courtabœuf, July 08, 2024 at 7:00 a.m.
-
LEXIBOOK: 2023-24 ANNUAL RESULTS IN LINE WITH EXPECTATIONS:
ANNUAL SALES AT €58.6M (+14.4%). EBIT AND NET RESULT UP
RESPECTIVELY TO +6.0M€ AND +5.0M€ THANKS TO AN EXCEPTIONAL
CONJUNCTION OF POSITIVE FACTORS. ENCOURAGING OUTLOOK FOR FY 2024-25
DESPITE UNCERTAINTIES ON THE IMPACT OF FREIGHT COSTS AND EXCHANGE
PERIODS AND ON CONSUMPTION.
- Annual
sales: a historic fiscal year after 4 years of growth. Over the
full fiscal year, which grew by 13.3% in 22-23, sales rose by a
further 14.4% to €58.6m, compared with €51.2m a year
earlier.
- Against
a backdrop of a 3.6% appreciation of the euro against the US dollar
in 1 year, and a very significant reduction in freight costs, Group
margins logically improved as Lexibook succeeded in maintaining its
prices, or even increasing them in a targeted manner, and continued
to launch highly profitable new products. The restated 4-net margin
for the year came to 38.6% vs. 34.0% the previous year, an increase
of 5.2 M€ vs. N-1.
- Massive
digital advertising campaign: 1.5 billion cumulative impressions on
Lexibook products.
- EBIT:
+6.0 M€, up 40.0%, thanks to higher volumes and margins, despite
advertising investment.
- EBITDA:
+7.5 M€, vs +4.7 M€ in N-1. Growth of 58.8%.
- Net
financial expense, €0.2m vs. €0.9m, thanks to favorable exchange
rate fluctuations.
- Net
Result: +5.0 M€, vs 3.0 M€ on FY22-23.
- The
Group moved into a net cash position of €2.0 million at year-end,
compared with net financial debt of €6.4 million the previous year.
This change was mainly due to the repayment of short-term debt (-
€1,227k), the change in factoring (- €961k) and the net change in
cash and cash equivalents (+ €6,209k).
-
Shareholders' equity, including net income for the
2023-2024 financial year, stands at €17 million, a historically
high level for the Group.
- Fiscal
year 2024-25 Expected slight growth in sales based on consumption,
which could be impacted by international political instability.
Operating income and net income expected to decline due to higher
freight costs and worsening exchange rate parities.
Lexibook (ISIN FR0000033599) today announced its
annual financial statements for the year ended March 31, 2024.
These financial statements were approved by the Management Board on
June 13, 2024. Accounts are audited.
In K€ |
MARCH 31, 2024 |
MARCH 31, 2023 |
Variation |
Net sales |
58 621 |
51 237 |
+14,4% |
Gross margin |
35 086 |
27 951 |
+25,5% |
EBITDA |
7 459 |
4 697 |
+58,8% |
Operating income |
5 951 |
4 251 |
+40,0% |
Net income |
4 992 |
3 042 |
+64,1% |
Aymeric Le Cottier, Chairman of Lexibook's
Management Board, commented: "After 4 consecutive years of growth,
the Group has once again posted a satisfactory year of progress,
thanks to the development of online sales and the success of new
products over the period. We strengthened international brand
awareness thanks to an unprecedented digital communications
campaign, generating over one and a half billion impressions.
Financially, the Group is more solid and has the means to achieve
its ambitions: shareholders' equity has reached a historically high
level of €17 million, and gearing has been reduced despite the
increase in activity. Fiscal 2024-25 is also off to a good start,
so we're optimistic about the new fiscal year, despite less
advantageous parity and freight levels than last year."
In K€ |
MARCH 31, 2024 |
MARCH 31, 2023 |
Variation % |
Net sales |
58 621 |
51 237 |
14,4% |
Cost of goods sold |
-23 535 |
-23 286 |
1,1% |
Gross margin |
35 086 |
27 951 |
25,5% |
External Services |
-17 374 |
-14 848 |
17,0% |
Taxes (excluding corporate income tax) |
-25 |
-93 |
-73,4% |
Personnel expenses |
-6 185 |
-4 965 |
24,6% |
Other operating income and expenses |
-5 551 |
-3 794 |
46,3% |
Operating income |
5 951 |
4 251 |
40,0% |
EBITDA |
7 459 |
4 697 |
58,8% |
Cost of net indebtedness |
-451 |
-432 |
4,4% |
Net interest on leases |
-31 |
-31 |
0,0% |
Other financial income and expense |
296 |
-483 |
-161,2% |
Net financial income |
-186 |
-946 |
-80,3% |
Profit before tax |
5 765 |
3 306 |
74,4% |
Income tax |
-773 |
-263 |
193,7% |
Net Income |
4 992 |
3 042 |
64,1% |
Sales and margin :
Fiscal year 2023-24 was a particularly
satisfactory year for the Lexibook Group. Our strategic choices
have paid off, enabling us to maintain a positive momentum of
profitable growth. The Group has thus achieved 5 consecutive years
of growth from 2019 to 2024. Sales remained buoyant thanks to new
high-potential products, flagship license portfolios and the
explosion of digital sales in France and abroad. Overall for the
year, sales closed at an all-time high for Lexibook, at €58.6
million (+14.4%). FOB sales (sales invoiced directly from HK on FOB
HK deliveries by full containers) were down slightly, but were more
than offset by growth in non-FOB sales, reflecting the popularity
of the Group's products among international retailers.
Over the full fiscal year, France accounted for
34% of sales. International sales (outside Europe) increased from
6% to 10% of total sales, and offer considerable potential.
In terms of products, sales growth was driven by
toys, watches, musical instruments and walkie-talkies, thanks to
new products for the Group's own brands and licensed products.
Licensed products also contributed to this growth, both on existing
dynamic licenses such as Frozen, Paw Patrol, Spiderman, and on new
licenses such as Super Mario, Miraculous, Barbie, Wish and
Stitch.
Finally, the Group's digitalization is bearing
fruit: digital sales are rising sharply (around 30% growth between
2022 and 2023) both in France and in other markets, thanks in
particular to a massive, Europe-wide digital marketing campaign for
the Group's new products.
Against a backdrop of a 3.6% rise in the euro
against the USD in 1 year, and a significant reduction in freight
costs, the Group's margins logically improved as Lexibook succeeded
in maintaining its prices, or even increasing them in a targeted
manner, and continued to launch a number of highly profitable new
products. Gross margin for the year was thus a high 60.0% vs. 54.6%
the previous year, up 7.2 M€ vs. N-1, and following an increase of
4.3 M€ the previous year.
The table below shows gross margin, gross margin
adjusted for currency impacts included in financial income and
exceptional items included in gross margin, and net margin 4 after
advertising contributions and royalties:
|
Notes |
31 MARCH 2024 |
|
31 MARCH 2023 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
58 620 967 |
|
51 236 987 |
Cost of goods sold |
|
-23 534 525 |
|
-23 285 934 |
Gross margin |
|
35 086 442 |
|
27 951 053 |
Gross margin rate |
|
59,9% |
|
54,6% |
Net foreign exchange impact |
22 |
331 147 |
|
-401 341 |
Adjusted gross margin |
|
35 417 589 |
|
27 549 712 |
Adjusted gross margin |
|
60,4% |
|
53,8% |
Advertising contributions |
|
8 240 944 |
|
6 524 906 |
Royalties |
|
4 548 335 |
|
3 619 083 |
Adjusted net margin 4 |
|
22 628 310 |
|
17 405 723 |
Adjusted net margin 4 |
|
38,6% |
|
34,0% |
The increase in gross margin is partly reflected
in the restated net 4 margin, which rose to €22.6m from €17.4m a
year earlier, reflecting higher advertising expenditure and a
slight increase in the share of licensed products in total
sales.
EBITDA :
EBITDA (earnings before tax, interest,
depreciation and amortization) rose by 58.8% to €7.5 million from
€4.7 million.
Operating income :
Taking advantage of the positive momentum,
Lexibook renewed a major international digital advertising campaign
which again generated over a billion digital impressions in 1 year
on its products in the EMEA zone, extended at the end of 2023 for
the first time to the USA, giving the brand unrivalled notoriety.
Total advertising expenditure, including advertising contributions
from customers, thus rose significantly by 747 K€ to 7.3 M€ vs. 6.5
M€ in N-1. External services remained at a high level of 17.4 M€,
mainly due to increased advertising expenditure and logistics
services linked to the growth in business volume.Personnel costs
rose by €1.2 million, mainly due to the provisioning of bonuses in
view of the increase in business and the hiring of several new
employees.Other operating expenses were up (1.6 M€), notably due to
a 0.9 M€ increase in royalty expenses linked to the rise in
business due to the net improvement in customer/supplier provisions
this year, and to advertising expenses to support product
consumption and Group brand awareness.
Finally, thanks to margin growth and despite
substantial advertising investment during the fiscal year, the
Group's operating income rose faster than sales, reaching €6.0
million versus €4.3 million in N-1.
Financial Income :
The €759,000 improvement in net financial income
was mainly due to the €732,000 change in net foreign exchange gains
on the evolution of the USD/EUR exchange rate. Despite the increase
in sales, the cost of debt rose by only 30 K€, due to the optimized
use of short-term financing lines, mainly as a result of the
favorable trend in working capital thanks to the significant
reduction in inventory levels. For the first time, the Group also
benefited from financial income from the investment of its cash in
term accounts after the Christmas season.Income tax expense for the
period amounted to 772.8 K€, reflecting changes in the value of
deferred tax assets (195.8 K€) and provisions for corporation tax
payable (577 K€).Against this backdrop, consolidated net
income at March 31, 2024 stood at €4.992 million, compared with
€3.042 million at March 31, 2023.
Inventory and debt levels
Thanks to rigorous management of supplies and
efforts to reduce inventory levels in the context of business
growth, inventory levels, net of depreciation, fell by 5 M€ in
France between 2023 and 2024, offset by 1.5 M€ in the USA to
support sales development on the continent. Inventory levels thus
fell to 11.9 M€ at March 31, 2024, compared with 15.5 M€ at March
31, 2023.
The average rate of depreciation was 12.2% at
March 31, 2024, compared with 6.6% at March 31, 2023, an increase
that will enable the Group to keep its inventory healthy and below
its target of 25% of sales.
The Group repaid a total of + €1,255, K for the
BPI Innovation Loan, loans from GIAC, VATEL and the PGE.
Shareholders' equity, including net income for
the 2023-2024 financial year, stands at €17 million, a historically
high level for the Group.
The Group moved into a net cash position of 2.0
M€ at year-end, compared with net financial debt of 6.4 M€ the
previous year. This change was mainly due to the repayment of
short-term debt (- €1,226.61 k), the change in factoring (- €961 k)
and the net change in cash (+ €6,208.92 k).
After deduction of factoring guarantee funds
amounting to €576k on N-1, the Group's net debt stood at -€2,042k
at 31-03-2024 vs. +€5,834k at 31-03-23.
Outlook 2024-2025
The Group presented its 2024 collections to
international retailers, and the response to new products was
positive. Bookings for the 2024 Christmas campaign are encouraging
and point to a new 2024-25 financial year in line with 23-24,
provided that international political instability does not disrupt
consumption. The order backlog for Q1 2024-25 points to an increase
in business compared with last year. Lexibook therefore hopes to
maintain its momentum this year.
Several renewals of license agreements expiring
in the next few months are currently being negotiated, and the
Group aims to extend them to new regions. Nevertheless, the Group
is seeing the emergence of new competitors in the territories in
which it operates, and is attempting to consolidate its positions
to consolidate its leadership. In the USA, Lexibook faces fierce
competition from powerful, long-established players, which
complicates the extension of licensing contracts in the region,
slows the Group's growth and increases local risks.
The euro/US dollar exchange rate was less
favorable in the first half of the fiscal year. International
freight conditions also deteriorated sharply due to the Red Sea
shipping crisis. This is lengthening delivery times and impacting
Group product costs, and will affect Group margins if they remain
at current levels or deteriorate further.
The change in financial management has led to
delays in confirming bank lines for the season and renewing lines
for 2025, with some lines expiring in the second half of 2024. The
Group plans to restructure its bank lines over the next few
years.
Financial calendar
2023/2024
Availability of the Universal Registration
Document on March 31, 2024: July 8, 2024
Financial calendar
2024/2025
- 1st quarter sales 2024-2025: August
19, 2024
- 2nd quarter sales 2024-2025:
November 15, 2024
- Half-year results to September 30,
2024: November 30, 2024
- 3rd quarter sales 2024-2025:
February 15, 2025
- 4th quarter sales 2024-2025: May
15, 2025
- Annual results to March 31, 2025:
June 28, 2025
- Availability of the Universal
Registration Document as at March 31, 2025: June 28, 2025
ABOUT
LEXIBOOK
LEXIBOOK®, owner of over 40 registered brands,
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 Euronext
Growth market in Paris. ISIN: FR0000033599 - ALLEX; ICB: 3743 -
Consumer electronics.
Contact
LEXIBOOK - Aymeric Le Cottier - CEO -
aymericlecottier@lexibook.com
- Lexibook Press Release Annual Results 2023-24 en
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