2022

Activity report

September 30, 2022

A European leader in the distribution of specialty steels

Table of contents

pages

04 Press release dated November 9, 2022 - Results as of September 30, 2022

  1. The Group
  2. 1 A leading distributor of specialty steels
  3. 2 Brand management
  4. 3 Stock market information and shareholder structure
  5. 4 Financial communication schedule
  6. Activity report - September 30, 2022
  7. 1 Group's sales and earnings

18 2 Sales and earnings by division

22

3 Consolidated financial position

PRESS RELEASE

Results as of September 30, 2022

November 9, 2022 - 6.00 PM

Sales: €2,118m (+46.8% vs September 30, 2021)

EBITDA: €269m (12.7% of sales)

Net income (Group share): €160m

Over the first 9 months of 2022, the Group's business and results broadly benefited from favorable market conditions.

However from Q2 onwards, more specifically for the distribution of stainless steel long products, a decline in demand occurred.

Similarly, after 18 months of increase, raw material prices began to decrease, a trend that is expected to continue over the end of the year.

Inventory valuation at September 30, 2022 and the Q3 2022 gross margin levels reflect these changes, with

  • the recording of an impairment representing 19.7% of the gross value of inventory compared to 17.1% at 2021 year-end and Ⅱ an average gross margin in Q3 2022 representing 22.5% of sales, around 5 percentage points lower than in H1 2022.

As of September 30, 2022 (9 months of activity), sales increased by +46.8% to €2,118 million (Q3 +26% to €638 million) and the gross margin by +41% to €548 million, representing 25.9% of sales (Q3 22.5%) compared to 26.9% a year earlier.

In this context, EBITDA amounted to €269 million, representing 12.7% of sales (Q3 9.5% to €60 million) compared to 10.1% as of September 30, 2021.

Net income (Group share) amounted to €160 million (Q3 €34 million) compared to €82 million a year earlier.

Operating working capital increased in line with business growth and represented 29% of sales as of September 30, 2022, compared to 28% as of June 30, 2022 and 26% at 2021 year-end.

Over the first 9 months of the year, the Group generated operating cash flow of €25 million and consolidated its financing structure with, at September 30, 2022, shareholders' equity of €661 million and a net debt to equity ratio (gearing) of 36% (35% at 2021 year-end).

Press release

4

On November 9, 2022, the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the period ended September 30, 2022.

€m

Q3 2022

Q3 2021

30.09.22

30.09.21

9 months

9 months

Sales

638

506

2,118

1,443

Gross margin

144

141

548

389

% of sales

22.5%

27.9%

25.9%

26.9%

EBITDA1

60

64

269

145

% of sales

9.5%

12.7%

12.7%

10.1%

Adjusted operating income 1

51

54

234

117

% of sales

8.0%

10.6%

11.0%

8.1%

Operating income

51

54

230

115

Net income (Group share)

34

39

160

82

1 Adjusted for non-recurring items.

Results as of September 30, 2022

Consolidated sales amounted to €2,118 million, up +46.8% compared to September 30, 2021, including the following effects:

  • volumes sold: -0.6% (Q3 2022 -6.1% vs Q3 2021);
  • prices: +46,5% (Q3 2022 +30.8% vs Q3 2021 and -5.4% vs Q2 2022);
  • scope: +0.9% (Q3 2022 +1.3% vs Q3 2021) following the acquisition of Fidelity PAC Metals in May 2022.

Gross margin amounted to €548 million representing 25.9% of sales (Q3 €144 million representing 22.5% of sales) compared to €389 million a year earlier (26.9% of sales).

Current operating expenses* amounted to €279 million (13.2% of sales) compared to €243 million as of September 30, 2021 (16.9% of sales). The increase in energy costs contributed for around €4 million to the increase in current operating expenses.

* excluding depreciation, amortization and provisions €(40)m.

EBITDA amounted to €269 million and represented 12.7% of sales (Q3 9.5%) compared to €145 million as of September 30, 2021 (10.1% of sales).

Adjusted operating income amounted to €234 million (11% of sales).

In this context, Net income (Group share) amounted to €160 million compared to €82 million as of September 30, 2021.

Press release

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Jacquet Metal SA published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 17:10:06 UTC.