H1 2024 results impacted by cyclical factors
- Half-year revenue of €31.4 million, down €6.1 million (-16%),
over 1st half of 2023
- EBITDA to €1.2 million, down €3.5 million
- Gross margin improved by more than 2 points
- Strong cash position to €15.2 million1, vs. €14.0 million as of
December 31, 2023
Business for the 3rd quarter of 2024
- Q3 2024 revenue at €14.7 million, down 17% vs. Q3 2023
- Backlog2 amounted to €25.5 million as of September 30,
2024
Adjustment of 2024 targets
- Sales momentum expected to rebound in the 4th quarter of
2024
- 2024 revenue expected of around €64 million
- 2024 consolidated EBITDA rate above 7%
- Forecast backlog expected to exceed €30 million at end of
2024
To meet its customers' expectations and take advantage of market
growth while capitalizing on its know-how, Groupe OKWIND will
develop its offering towards a multi-technology one: tracker,
shading, photovoltaic table, storage, charging station and
intelligent regulation. Driven by its initial results, Groupe
OKWIND is pursuing its commercial development with all players in
the Water cycle. Finally, the Company is expanding its offering
with the development of collective self-consumption for industries,
local authorities and farmers.
Regulatory News:
Groupe OKWIND (FR0013439627 – ALOKW), which is
specialized in the design, manufacture and sale of smart energy
generation and management systems dedicated to self-consumption,
today announces its half-year results for 2024 and sales for the
first nine months of the year.
Louis MAURICE, Founder and Chairman of Groupe OKWIND,
comments: "As announced ahead of summer, the prevailing unfavorable
environment during the first half of 2024 (electricity price
volatility, political uncertainties, high interest rates and
adverse weather conditions) had temporarily impacted our sales and
financial performance without impairing our cash position, which
remains solid. In addition, we have invested in gearing up for the
Group's new phase of growth by structuring our organization to make
it more efficient. Besides, the first half of 2024 was marked by
the strategic repositioning of our Offering to cover the entire
value chain, with a complete connected ecosystem from now on. This
new Offering has been favorably received by professionals in the
agricultural sector as long-standing customers, and we are now
intending to deploy it across all our markets. We are currently
observing an upturn in our sales momentum, which should be
reflected by a sharp acceleration in order intake in the final
quarter. Lastly, the construction of a new manufacturing facility
illustrates our confidence in the Group's ability to get back to a
phase of strong growth thanks to its unique positioning,
particularly in collective self-consumption. The 2025 fiscal year
will illustrate our significant progress in the Water market, which
has experienced a longer-than-expected commercial cycle".
Simplified income statement
in €million
30/06/2024
30/06/2023
Change in %
Revenue
31.4
37.5
-16%
of which BtoB
27.7
33.5
-17%
of which BtoC
3.7
4.0
-7%
Other operating income
1.3
1.0
+33%
Purchases consumed
(15.7)
(19.6)
-20%
Personnel expenses
(7.6)
(6.8)
+11%
Other operating expenses
(8.0)
(7.2)
+12%
Taxes
(0.2)
(0.2)
+16%
EBITDA
1.2
4.7
-74%
Net changes in D&A and impairment
(1.1)
(0.9)
+25%
Operating income
0.1
3.8
-97%
Financial income and expenses
(0.5)
(0.2)
+197%
Non-recurring income and expenses
-
(0.1)
n.s.
Income tax
0.1
(0.7)
n.s.
Net income (Group share)
(0.2)
2.8
-108%
Business for the 1st half of 2024
In the first half of 2024, Groupe OKWIND's business was
penalized by several cyclical factors, more particularly a volatile
electricity price environment compared with the previous year. The
first-half revenue came to €31.4 million, down 16% compared with
the first half of 2023. The revenue breaks down as follows:
- 88% of revenue from the BtoB segment: €27.7
million, down 17%, - 12% of revenue from the BtoC segment: €3.7
million, down slightly by 7%.
More specifically, in the Farm business, the Group’s largest
market, the crisis in the sector, particularly adverse weather
conditions and uncertainties linked to the recent economic and
political environment had been impacting the Group's sales
momentum.
In the Industry/Local authorities business line, momentum
remained steady: the Group now has a track record across the full
spectrum of players: local authorities, trade unions and the main
service providers. The number of calls for projects is steadily
increasing in this booming market, on which significant progress is
expected from 2025 onwards. However, the sales cycle in the Water
and sanitation market turned out to be longer than expected.
In the first half of 2024, the gross margin was up by more than
two points, as a result of the work carried out with suppliers and
the disinflation of some raw materials. Personnel costs rose by 11%
as a result of the organizational restructuring, with reinforced
sales force specialized by market, supply chain and manufacturing.
Other operating expenses came to €8.0 million, vs. €7.2 million in
the first half of 2023. After taking these items into account,
EBITDA for the first half of 2024 stands at €1.2 million,
representing an EBITDA rate of 3.8%.
Financing and cash position as of June 30, 2024
In 2023, Groupe OKWIND subscribed to a €25 million syndicated
credit facility, consisting of a €10 million revolving credit
facility to finance its working capital requirement. The Group also
benefits from a medium-term credit facility of €15 million, which
has not yet been drawn down. As of June 30, 2024, Groupe OKWIND had
a solid cash position1 of €15.2 million, compared with €14 million
as of December 31, 2023.
Subsequent event
On October 1st, the short-term credit facility was increased
from €10 million to €16 million.
Third quarter 2024 revenue and 2024 outlook
As of September 30, 2024, revenue totaled €46.1 million,
compared with €55.3 million a year earlier. Firm order intake since
January 1st of the current fiscal year, consolidated at the end of
September 2024, amounted to €36.9 million, vs. €60.3 million at the
end of September 2023. Consequently, the backlog as of September
30, 2024 stood at €25.5 million, compared with €45.9 million as of
September 30, 2023. This weak quarterly performance reflects the
wait-and-see attitude of some prospects and customers spurred by
political and economic uncertainties.
In this framework, the Group is reviewing its short-term
targets. 2024 annual revenue should be close to €64 million, while
the consolidated EBITDA rate for the current year should be over
7%.
Development strategy and outlook
The fourth quarter should enable the Group to record a rebound
in order intake: related to several parameters:
- In the Farm business line, the Groupe OKWIND signed
framework agreements with several agricultural cooperatives which
should have positive results in the last quarter of 2024. The Group
is still in the process of obtaining local authorizations for
agri-solar permits for several identified projects.
- In the Water business line, the Group benefits from a
recognized positioning with several landmark installations and
unrivalled results in the optimization of energy processes on
wastewater treatment plants. Despite a longer-than-anticipated
sales cycle, the market interest has been confirmed by the growing
number of commercial offers recorded since 2022. The Group is in
advanced contact with several prime contractors in the Water market
on large-scale Tender Offers.
- Across all business lines, the Group OKWIND will
continue to roll out its new multi-technology offering, bringing
even greater value in terms of self-sufficiency and energy
efficiency. As a long-standing expert in self-consumption, the
Groupe OKWIND also intends to position on larger-scale collective
self-consumption projects.
Looking ahead 2026, the company is currently studying its
financial targets.
Construction of a new plant with expanded manufacturing
capacity
Groupe OKWIND has just obtained a building permit for its future
plant in Etrelles, Brittany, a site that will enable the Groupe to
triple its production capacity over time and meet the growing
demand for renewable energies.
Implementation of the share buyback program
In accordance with the decisions of the last Annual General
Meeting, Groupe OKWIND has decided to implement a share buyback
program to cover future allocation of free shares (“AGA”, in
French).
Half-year financial report 2024 availability
The half-year financial statements were approved by the Board of
Directors and reviewed on October 16, 2024. The 2024 half-year
financial report will be available by October 31, 2024 on the
Investor Relations website (www.okwind-finance.com), in the
Documentation section.
About Groupe OKWIND
Founded in 2009 by Louis Maurice, Chairman and CEO, the French
Group OKWIND is the expert in individual and collective
self-consumption of energy. Its global approach and cutting-edge
technology aim at enhancing the energy independence and sufficiency
of farms, companies, local authorities and private individuals.
Every day, the OKWIND Group strives to deploy local, controlled,
stable, low-carbon, fixed-cost energy to accelerate and optimize
the ecological transition. The Group designs, develops and deploys
complete green energy management solutions (local solar production,
self-consumption, excess energy recovery, improved consumption
practices). By becoming producer-consumers (prosumers), OKWIND
customers can generate their own energy, control their production
and regulate their electrical processes. Historically based in the
Great West of France, 30km from Rennes (Torcé), the OKWIND Group is
close to its customers, with several agencies and work centers
throughout France. In 2023, the OKWIND Group generated consolidated
revenue of €82.5 million and today has 235 employees, with more
than 4,700 installations throughout France.
For more information: www.okwind.fr
_________________________________________________________________________________________________
1 Cash and cash equivalents include available cash, bank overdrafts
and short-term marketable securities as of June 30, 2024. 2 The
backlog corresponds to orders for which a purchase order has been
signed, some of which are invoiced on delivery and the remainder on
commissioning of the trackers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016583155/en/
Groupe OKWIND Investor Relations investors@okwind.fr
NewCap Thomas Grojean/Aurélie Manavarere Investor Relations
okwind@newcap.eu T.: +33 (0)1 44 71 94 94 NewCap Nicolas
Merigeau Media Relations okwind@newcap.eu T.: +331 44 71 94 98
Grafico Azioni Groupe Okwind (EU:ALOKW)
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Da Ott 2024 a Nov 2024
Grafico Azioni Groupe Okwind (EU:ALOKW)
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