Egide: 2020 2nd half Revenue and 2020 revenue
Bollène, January 26, 2021 07 :00 am (CET)Press
Release
2020 2nd Half
Revenue2020 Revenue
Despite Covid crisis and the fire at its plating line at
Egide USA, the Egide Group has succeeded to minimize their impact
in 2020, and continues its recovery towards sustainable profitable
growth.
- Turnover 2020: €29.96 million (-5.8%)
- Resilience of activity in European market (+ 15.3% /2019)
- Egide USA revenue was affected in 2H by production interruption
(-28.3% /2019). The revenue lost in 2020 is in the range of €5
million, but no order cancellation was registered which means that
it will be delivered in 2021.
- Santier remains stable (+ 0.7% /2019)
- Strong growth of Egide SA (+ 11% /2019)
- Outlook
- The overall order backlog at year end confirmed resilience to
the crises and showing same level compared to December 2019.
- New customers were acquired to support future diversified
growth given the difficulties to conduct proper commercial
prospection due to Covid restrictions.
- US customers remains loyal despite the fire. Some had to find
temporary alternatives, but Egide USA remains their preferred
supplier. The new plating workshop will be fully operational by
early March 2021.
- While recent business activity allows to anticipate growth in
2021, the persistence of Covid prevents any reliable projection in
terms of activity or market trends.
Egide Group's unaudited consolidated revenue for
2020 was €29.96 million, down 5.8% compared to 2019.
While strong growth was achieved at Egide SA, US
sales were temporally affected by the fire incident. Resultingly,
the group sales for the 2nd half of 2020 amounted to 12.69 million
euros down 25% compared to the 2nd half of 2019.
Sales in dollars represent 64% of the group's
total revenue in 2020. For information, the average euro/dollar
exchange rate in 2020 was 1.14 compared to 1.12 in 2019.
HIGHLIGHTS
Millions of euros |
H2 2019 |
H1 2020 |
H2 2020* |
H2oH1 Var.% |
H2oH2 Var.% |
|
FY 2019 |
FY 2020* |
YoY Var.% |
Comp. Var.%** |
Egide SA |
6.70 |
6.27 |
7.15 |
14.0% |
6.7% |
|
12.09 |
13.42 |
11.0% |
11.0% |
Egide USA |
6.33 |
6.05 |
2.08 |
-65.7% |
-67.2% |
|
11.34 |
8.13 |
-28.3 |
-27.0% |
Santier |
3.89 |
4.95 |
3.47 |
-30.0% |
-10.9% |
|
8.36 |
8.42 |
0.7% |
2.6% |
Group |
16.92 |
17.27 |
12.69 |
-26.5% |
-25.0% |
|
31.79 |
29.96 |
-5.8% |
-4.8% |
* unaudited ** at constant exchange rates
Millions of euros |
FY 2019 |
FY 2020* |
Variation |
USA |
18.22 |
14.60 |
-20.0% |
Europe |
8.66 |
10.00 |
15.3% |
Asia &
ROW |
4.92 |
5.36 |
9.0% |
Group |
31.79 |
29.96 |
-5.8% |
* unauditedIn Europe and Asia markets, the
impact of the Covid pandemic was minimal, and the group was able to
have good performance. In the US market, on the other hand,
the second half of 2020 was impacted by the fire at Egide USA, in
July, which implied an immediate disruption of the production for
several weeks, followed by a cautious and deliberative restart of
the manufacturing in order to meet stringent quality
requirements
This variation includes the unknown impact of
the COVID crisis and the estimated €5 million loss of revenues in
Q3 and Q4 following the incident at the Egide USA site. Use of
redundant plating facilities from the group as well as third party
services were partially successful in meeting customer demands. The
new state of the art plating facility in Egide USA is scheduled for
completion by early March 2021.
Both Santier and Egide USA were able to
participate in the Paycheck Protection Program administered by the
US Small Business Administration, per the Coronavirus Air, Relief
and Economic Security Act. Both loans have been fully forgiven in
2020, which, combined with the insurance policy for the Egide USA
site, will offset the deterioration in profitability due to the
interruption in deliveries.
During the fourth quarter of 2020, Santier
rebuilt its backlog to 5 months of activity, which is a positive
indicator of the business recovery. Santier's business cycle being
shorter than the Group's average cycle, the order book, at the
worst time of the year, had fallen to 4 months.
Egide SA operational performance continued
its progression in 2H20 and new progress was achieved with its
Industry 4.0 modernization plan. A first robotic cell for automated
assembly and a Manufacturing Execution System are being rolled out
in 2021.
REVENUE PER APPLICATION
Millions of Euros |
H2 2019 |
H1 2020 |
H2 2020* |
H2oH1 Var.% |
H2oH2 Var.% |
|
FY 2019 |
FY 2020* |
Var. % |
Change on a comparative basis ** |
Therm. imaging. |
5.03 |
4.46 |
4.97 |
11.5% |
-1.1% |
|
9.25 |
9.43 |
2.0% |
2.1% |
Power |
4.11 |
5.54 |
1.98 |
-64.3% |
-51.8% |
|
8.40 |
7.52 |
-10.5% |
-8.8% |
Optronics |
2.01 |
2.13 |
2.17 |
2.0% |
8.1% |
|
4.79 |
4.30 |
-10.2% |
-9.1% |
RF/MW |
3.24 |
3.41 |
1.55 |
-54.4% |
-52.0% |
|
5.25 |
4.96 |
-5.4% |
-4.1% |
Others |
2.53 |
1.73 |
2.01 |
16.0% |
-20.7% |
|
4.10 |
3.74 |
-8.8% |
-7.7% |
Group |
16.92 |
17.27 |
12.69 |
-26.5% |
-25.0% |
|
31.79 |
29.96 |
-5.8% |
-4.8% |
* unaudited ** At constant
exchange rates
Thermal ImagingThis activity
globally continued its growth thanks to significant growth from
historical customers in Europe and Middle-East (+22%), and from
Asian customers (+26%) where new accounts and new projects were won
in China, South Korea and India. This segment is very active and
Egide is enlarging its customer base with a need to use hermetic
package and assembly solutions for high performing night visions
systems for security and defense.
PowerThis segment was the most
affected by the fire since it is an important portion of Egide USA
business. When abstracting 2H Egide USA figures, trend remains a
double-digit growth for the group in 2020.
OptronicsIn this application
segment, Egide's business is mainly made up of telecom
sub-assemblies packaging and of various lasers applications. The
laser activity declined mainly due to specific niche markets where
some customers had excess inventory and a reduction in demand in
the short term due to Covid. The optronics market is expected to
improve in 2021: the telecommunications markets have shown a
growing demand to qualify Egide on new programs for the very
high-speed optical transmission markets. Currently in the prototype
phase, billings for these new programs will be visible in 2022 or
2023 as soon as Egide is qualified.RF/MWPutting
aside the temporary fire impact in 2H20, this segment is also
growing thanks to Egide’s good exposure on the military/aerospace
customers in US, Europe and Middle-East. High frequency
applications are strategic to Egide and investments in further
innovations and engineering resources in this domain is planned.
Demand in markets requiring higher frequency ranges hermetic
solutions is increasing.
Others This segment
represents many different small activities with no true significant
trend. It does include however revenues in new markets which are
growing thanks to the diversification undertaken by the Group.
Thus, several contracts with new representatives have been signed
in Germany, Russia and Spain to complement existing export channels
and increase Egide's presence in countries with commercial
potential in the markets we serve.
OUTLOOKSNew customers who
started business with Egide in 2019 and 2020 now represent 1.5 M€
of sales. Due to the long cycle time of Egide’s products, this
number is expected to grow significantly in the following 3 years.
Although the Covid does not allow visiting customers or attending
shows, actions are made to pursue the prospection by other
means.
Backlog for the company is comparable with
year-end 2019 level.
Egide USA facility reconstruction is complete,
and installation of new plating equipment started in January and
should be completed by early March.
For Santier, 2021 starts off well due to good
bookings in Q4.
Egide SA expects some growth in 2021, initiating
some new business in Power, High-end Fibercom HTCC enclosures, oil
and gas prospection and sensors.
While the persistence and the severity of the
pandemic prevents any reliable projection in terms of activity or
market trends, the Egide Group considers that it benefits from a
strong strategic positioning focused on priority market segments, a
new organization that has become more agile, and a relevant
international presence strengthened by commercial partnerships in
Europe and Asia. Therefore, the Egide Group maintains its ambition
to have three units in slight growth in 2021.
FINANCIAL CALENDAR
March 30 2021 : 2020
financial results (after French market closure)
March 31, 2021: Videoconference
- Presentation of the 2020 Annual Results - SFAF meeting - the
connection information will be transmitted later
on.
CONTACTS
EGIDE – Finance Department - Luc Ardon
- +33 4 90 30 35 94 – luc.ardon@fr.egide-group.com
FIN’EXTENSO – Press Relations - Isabelle Aprile
- +33 1 39 97 61 22 – i.aprile@finextenso.fr
About Egide -
www.egide-group.comEgide is a group with an
international dimension, specialized in the manufacture of hermetic
packages and heat dissipation solutions for sensitive electronic
components. It operates in cutting edge markets with strong
technology barriers to entry in all critical industry segments
(Thermal Imaging. Optronics. High-Frequency. Power Units…). Egide
is the only pure player in this market niche with manufacturing
bases in France and the United States.
Egide’s
eligibility for tax efficient French innovation-focused mutual
funds (FCPI) was renewed on May 14,
2018.
Egide is listed on
Euronext Paris™- Segment C - ISIN code: FR0000072373 – Reuters:
EGID.PA – Bloomberg: GID
- Egide-2020-Revenue-PR-01262021