LSS Lectra

LECTRA: First half 2024: increased revenues and EBITDA, due to improved Group’s fundamentals and the integration of Launchmetrics. Confirmation of 2024 objectives.

First half 2024: increased revenues and EBITDA, due to improved Group’s fundamentals and the integration of Launchmetrics. Confirmation of 2024 objectives.

• Revenues: 262.3 million euros (+9%)*
• EBITDA before non-recurring items: 42.2 million euros (+20%)*

        
*At actual exchange rates

In millions of euros	April 1 – June 30		January 1 – June 30
	2024(1)	2023	2024(1)	2023
Revenues	132.7	115.9	262.3	239.6
Change at actual exchange rates (in %)	15%		9%
EBITDA before non-recurring items(2)	21.2	15.6	42.2	35.3
Change at actual exchange rates (in %)	36%		20%
EBITDA margin before non-recurring items (in % of revenues)	15.9%	13.4%	16.1%	14.7%
Income from operations before non-recurring items	10.4	8.2	21.7	20.3
Change at actual exchange rates (in %)	28%		7%
Net income(3)	4.4	6.6	11.1	13.9
Free cash flow before non-recurring items	6.3	7.4	28.3	16.6

(1)  The 2024 amounts include Launchmetrics since January 23, 2024
(2)  The definition for performance indicators appears in the Management Discussion of June 30, 2024
(3)  In 2023, net income included the impact of non-recurring income of 2.6 million euros

Paris, July 25, 2024. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2024, which have been subject to a limited review by the Statutory Auditors. To facilitate the analysis of the Group's results in its new scope, the accounts of Lectra excluding Launchmetrics (the "Lectra 2023 scope") and those of Launchmetrics are analyzed separately.

The detailed 2024 vs 2023 comparisons are based on actual exchange rates, except for the Lectra 2023 scope stated on a like-for-like basis.

1. Q2 2024

The macroeconomic and geopolitical environment remained particularly degraded in the second quarter but with heterogeneous situations between different geographical markets and market sectors. In particular, the manufacturer’s morale has improved in Asia-Pacific while uncertainty prevailed in Europe and the United States, due to past or upcoming elections.

This uncertainty resulted in a cautious position on the part of the Group's customers in their investment decisions, with a negative effect on orders for new systems but without having a significant impact on orders for new software subscriptions, which are considered by the Group’s customers as operating expenses.

Second quarter results were nonetheless significantly higher, driven by the improvement in Group’s fundamentals – growth in recurring revenues, higher gross profits, stability in overhead costs - and by the integration of Launchmetrics. Q2 2024 revenues (132.7 million euros) and EBITDA before non-recurring items (21.2 million euros) significantly increased (respectively +15% and +36%). The EBITDA margin before non-recurring items stood at 15.9%.

Launchmetrics contributed 10.8 million euros to revenues and 1.5 million euros to EBITDA before non-recurring items, with an EBITDA before non-recurring items margin of 13.4%.

Lectra 2023 scope

Orders for perpetual software licenses, equipment and accompanying software, and non-recurring services (38.7 million euros) are stable compared to Q2 2023.

The annual value of new subscriptions for software came to 3.0 million euros, up 6% compared to Q2 2023.

Q2 2024 revenues came to 121.9 million euros, up 5% compared Q2 2023. EBITDA before non-recurring items was 19.7 million euros, up 27% and EBITDA margin before non-recurring items stood at 16.2% (+2.8 percentage points).

1. FIRST HALF 2024

H1 2024 revenues were 262.3 million euros, up 9%.

The gross profit came to 187.5 million euros, up 13% compared to H1 2023, and the gross profit margin to 71.5% up 2.4 percentage points.

EBITDA before non-recurring items totalled 42.2 million euros up 20% and the EBITDA margin before non-recurring items up 16.1% up 1.4 percentage points.

Consolidated income from operations before non-recurring items amounted to 21.7 million euros, up 7%. This included a 11.0 million euros charge for amortization of intangible assets arising from acquisitions made since 2021, including 4.7 million euros for Launchmetrics.

Considering the amortization of Launchmetrics intangible assets, the increase in financial expenses and an income tax expense of 5.7 million euros, net income totalled 11.1 million euros. Net income for H1 2023 (13.9 million euros) included the impact of a non-recurring income of 2.6 million euros in Q2 2023.

Free cash flow before non-recurring items came to 28.3 million euros, up sharply compared to 2023 (16.6 million euros in the first half of 2023).

As of June 30, 2024, the Group has a particularly robust balance sheet, with a consolidated shareholders' equity of 333.6 million euros, a negative working capital requirement of 10.3 million euros and net financial debt of 59.0 million euros, consisting in financial debt of 118.2 million euros and cash of 59.2 million euros, after paying in full the first tranche of the acquisition of Launchmetrics, i.e. 77.0 million euros.

Lectra 2023 scope

In H1 2024, orders for perpetual software licenses, equipment and accompanying software, and non-recurring services (74.2 million euros) were stable compared to H1 2023. The annual value of new software subscription orders came to 5.4 million euros, stable compared to H1 2023.

Revenues amounted 243.2 million euros, up 2% compared to H1 2023.

EBITDA before non-recurring items was 39.7 million euros, up 14% and the EBITDA margin before non-recurring items came to 16.3%, up 1.8 percentage points, compared to 2023.

1. BUSINESS TRENDS AND OUTLOOK

In its financial report on the fourth quarter and full year 2023, published on February 14, 2024, Lectra reiterated its long-term vision, as well as the objectives of its 2023-2025 strategic roadmap and its ambitions for 2025: revenues of 600 million euros, of which 400 million euros in recurring revenues, including 90 million euros in SaaS revenues, and an EBITDA margin before non-recurring items exceeding 20%.

The Group also stated that while the substantial improvement in the fundamentals of the Group's business model in 2023 would have a positive impact on 2024 results, persistent macroeconomic and geopolitical uncertainties could continue to weigh on investment decisions by its customers.

While business in H1 remained subdued, the increase in EBITDA before non-recurring items - which exceeded growth in revenues -confirms the improved fundamentals of Lectra’s business model.

2024 financial objectives confirmed

On February 14, the Group reported its objectives for 2024, before including the Launchmetrics acquisition (i.e., for the Lectra 2023 scope): to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The Group also reported that Launchmetrics revenues (for the consolidation period from January 23 to December 31, 2024) were projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15%.

These scenarios were prepared on the basis of the closing exchange rates on December 29, 2023, and particularly $1.10/€1.

The results for H1 2024 confirm the 2024 objectives. At this stage, full-year results however would be at the lower end of the indicated ranges.

The 2023 Annual Financial Report, as well as the Management Discussion and Analysis of Financial Conditions and Results of Operations and the financial statements for H1 2024 are available on lectra.com. Q3 and the first nine months of 2024 earnings will be published on October 30, 2024.

As a major player in the fashion, automotive and furniture markets, Lectra contributes to the Industry 4.0 revolution with boldness and passion by providing best-in-class technologies. The Group offers industrial intelligence solutions - software, equipment, data and services - that facilitate the digital transformation of the companies it serves. In doing so, Lectra helps its customers push boundaries and unlock their potential. The Group is proud to state that its 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators. Founded in 1973, Lectra reported revenues of 478 million euros in 2023. The company is listed on Euronext, where it is included in the following indices: SBF 120, CAC Mid 60, CAC Mid&Small, CAC All Shares, CAC All-Tradable, CAC Technology, EN Tech Leaders and ENT PEA-PME 150. For more information, visit www.lectra.com

Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris • France
Tel. +33 (0)1 53 64 42 00 – www.lectra.com
A French Société Anonyme with capital of €37,832,965 • RCS Paris B 300 702 305

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• Lectra_Press_Release_H12024