- Profitability impacted by lower sales volumes in the Group's
main markets
- Continuation and reinforcement of the TRANSFORM 2025 plan to
increase the Group's resilience in the face of shortened economic
cycles by enhancing the flexibility of its cost structure
Regulatory News:
SergeFerrari Group (FR0011950682 – SEFER), a leading global
supplier of innovative flexible composite materials, listed on
Euronext Paris – Compartment C, today announced its consolidated
full-year results for the year ended December 31st, 2023, as
approved by the Supervisory Board on March 26th, 2024. These
consolidated financial statements have been audited by the
Statutory Auditors, whose report is currently being prepared.
Audited consolidated financial statements (report being
prepared)
in €m
Dec 31, 2023
Déc 31, 2022
Change
Revenue
327.6
338.7
-3.3%
Adjusted EBIT1
11.3
26.5
-57.5%
Operating Income
12.6
25.1
-50.0%
Net Income, Group Share
4.7
15.5
-69.6%
Sébastien Baril, SergeFerrari Group’s Chairman of the
Executive Board, stated:” Although the adverse environment in
its historic businesses led to a drop in volumes and profitability,
SergeFerrari Group continued to develop its Solutions activities by
extending its geographical coverage in 2023. This development
ambition must, however, be coupled with an adjustment in the
allocation of resources and production facilities to market
conditions and trends. The Group is exposed to ever-shortening
economic cycles. Faced with this reality and driven by the aim of
returning to profitability in line with its standards, the Group is
reconsidering its organization as part of the TRANSFORM 2025 plan.
The plan sets out our strategic direction, while detailing the
operational and financial roadmap that supports it, with the
objective of creating greater value for the Group as a whole.”
2023 Revenues and profitability
Revenues
(in €m)
2023
2022
Change at current scope and
currency
Change at constant scope and
currency
1st quarter
84.8
79.0
+7.3%
+0.2%
2nd quarter
90.7
91.0
-0.3%
-5.6%
3rd quarter
73.0
79.7
-8.3%
-12.8%
4th quarter
79.1
89.0
-11.2%
-10.8%
Full Year Total
327.6
338.7
-3.3%
-6.8%
The Group reported revenues of €327.6 million in 2023, down
-3.3% on a current scope and exchange rate basis and -6.8% on a
constant scope and exchange rate basis, impacted by the contraction
of its historical markets in Europe. The downturn is more
pronounced in innovative materials (around 73% of sales), with
sales volumes down by 12% compared with 2022. This situation is
partially offset by the growth dynamic observed in the SOLUTIONS
activities, with strong organic growth and the impact of
acquisitions made during the period, namely Markleen and BSI. By
the end of December 2023, SOLUTIONS activities represented 12% of
the Group's consolidated sales, or over €40 million.
Audited consolidated financial statements (report being
prepared)
in €m
Dec 31, 2023
Déc 31, 2022
Change
Revenue
327.6
338.7
-3.3%
Adjusted EBIT2
11.3
26.5
-57.5%
Operating Income
12.6
25.1
-50.0%
Net Income, Group Share
4.7
15.5
-69.6%
The decline in the margin rate on purchases consumed over the
period, from 52.3% of revenues in 2022 to 50.6% in 2023, is
explained by the combination of a negative volume effect on sales
and rising energy costs. The sharp reduction in volumes produced in
2023 has enabled the Group to achieve the inventory reduction
targets but has contributed to the recognition of an under-activity
charge.
The Group's adjusted EBIT therefore came to €11.3 million,
compared with €26.5 million the previous year. In conclusion,
SergeFerrari Group recorded operating income of €12.6 million,
compared with €25.1 million in 2022, and net income, Group share,
of €4.7 million, compared with €15.5 million in 2022.
Financial Structure
in €m
Dec 31, 2023
Dec 31, 2022
Net debt
128.2
85.3
Net debt excl. IFRS 16
78.6
61.2
Shareholders' equity, Group
share
118.5
120.0
The operating working capital requirement (WCR) follows the
trajectory of the €8.5 million reduction in inventories recorded in
2023, decreasing to €130.1 million and representing 39.7% of
revenues in 2023 compared with €135.8 million and 40.0% of revenues
in 2022. This decline is also the result of a 6.1% decrease in
trade receivables.
In addition, the Group pursued its external growth policy aimed
at consolidating its position in SOLUTIONS activities, through the
acquisition of a 64% stake in Markleen Management SL in Spain and
the acquisition of a 60% stake in BSI in India.
Net debt used to calculate covenants thus came to €78.6 million,
representing around 61% of Group shareholders' equity. The Group is
in compliance with its banking covenants, the leverage ratio having
been waived on December 31, 2023.
Outlook 2024
Since the end of 2023, SergeFerrari Group has been working to
ensure that its organizational structure can more easily absorb the
business cycles observed in its historical markets, through the
deployment of its TRANSFORM 2025 plan. The first effects of this
program were already felt in the 4th quarter of 2023, notably the
management of working capital through supply chain optimization.
These measures were enhanced by using part-time working in the 1st
quarter 2024.
TRANSFORM 2025 plan
Given the increasingly cyclical nature of business in its main
markets, the Group intends to adapt its cost structure in line with
its TRANSFORM 2025 plan launched at the end of 2023.
This plan aims to increase profitability and optimize the
allocation of resources through a number of levers:
- Industrial reorganization in line with the current production
perimeter, avoiding duplication of jobs by geographical area;
- Preservation of strategic investments and limitation of
capacity investments;
- Optimization and adaptation of the organizational structure to
the seasonality observed in historical markets, with the aim of
achieving a WCR representing 35% of revenues by 2025;
- Deployment of synergies from recent acquisitions and strengthen
the penetration of Solutions activities in new geographies;
- Securing the Group's competitive advantages by maintaining the
momentum of R&D investment, ensuring the renewal of the product
portfolio.
Dividend
At the Annual General Meeting of May 16th, 2024, the Group will
propose a dividend of €0.12 per share for fiscal year 2023, payable
in July 2024.
Governance
Philippe Brun, member of the SergeFerrari Group Executive Board,
has retired and will step down from his operational functions on
March 31st, 2024. Philippe Brun will continue to support the
majority shareholder in its strategic considerations.
Sébastien Ferrari, Chairman of the Supervisory Board of
SergeFerrari Group, comments: "I would like to thank Philippe
Brun for his commitment during his fourteen years within the Group
and will be delighted to continue to benefit from his support
within the Ferrari Participations family holding company. During
this period, the Group's revenues more than doubled to €327 million
in 2023, thanks in particular to some fifteen external growth
operations.”
Financial calendar
- Publication of 2023 Q1 revenues, on
Tuesday, April 23rd, 2024, after market close - Annual
General Meeting: Thursday 16th, 2024, at 10:00 am
ABOUT SERGEFERRARI GROUP
The Serge Ferrari Group is a leading global supplier of
composite materials for Tensile Architecture, Modular Structures,
Solar Protection and Furniture/Marine, in a global market estimated
by the Company at around €6 billion. The unique characteristics of
these products enable applications that meet the major technical
and societal challenges: energy-efficient buildings, energy
management, performance and durability of materials, concern for
comfort and safety together, opening up of interior living spaces
etc. Its main competitive advantage is based on the implementation
of differentiating proprietary technologies and know-how. The Group
has manufacturing facilities in France, Switzerland, Germany, Italy
and Asia. Serge Ferrari operates in 80 countries via subsidiaries,
sales offices and a worldwide network of over 100 independent
distributors.
In 2023, Serge Ferrari posted consolidated revenues of €327.6
million, over 80% of which was generated outside France. The
SergeFerrari Group share is listed on Euronext Paris – Compartment
C (ISIN: FR0011950682). SergeFerrari Group shares are eligible for
the French PEA-PME and FCPI investment schemes.
www.sergeferrari.com
_____________________________ 1 REBIT = Operating income +/-
restructuring costs +/- balance sheet effect of acquired companies’
purchase price allocation operations 2 REBIT = Operating income +/-
restructuring costs +/- balance sheet effect of acquired companies’
purchase price allocation operations
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240326862545/en/
SergeFerrari GROUP Philippe Brun Executive Board
Members Valentin Chefson Head of Investor Relations
investor@sergeferrari.com
NewCap Investor Relations – Financial
Communication Théo Martin / Nicolas Fossiez Tél. : 01 44 71 94
94 sferrari@newcap.eu
Grafico Azioni Sergeferrari (EU:SEFER)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Sergeferrari (EU:SEFER)
Storico
Da Gen 2024 a Gen 2025
