PRESS RELEASE
Loudéac,
FIRST-HALF 2021 RESULTS
Solid sales growth
Improving the profitability of
Structuring the Group to embark on a new phase of growth
On
Consolidated data, French accounting standards, Limited review, in €k | H1 2021 | H1 2020 |
Revenue | 51 996 | 49 402 |
Sponsorship and image rights expenses1 | (200) | (1 483) |
EBITDA | 2 221 | 1 018 |
EBTIDA margin | 4.3% | 2.1% |
Depreciation, amortisation and provisions | (1 318) | (1 052) |
Operating income/loss | 1 023 | 50 |
Financial income/loss | (91) | (42) |
Non-recurring profit (loss) | 92 | 188 |
Corporate tax | (461) | (190) |
Share of net profits of entities accounted for by the equity method | 60 | 191 |
Net income (Group share) | 660 | 111 |
GROWTH IN SALES IN HISTORICAL ACTIVITY, ACCELERATION IN GROWTH DRIVERS
In millions of euros, Limited review | H1 2021 | H1 2020 | Change |
Farming Supplies | 46.5 | 42.8 | +9% |
Farming Nutrition | 4.8 | 6,0 | -20% |
Other | 0.7 | 0.6 | +15% |
Total | 52.0 | 49.4 | +5% |
FARMING SUPPLIES
Acceleration in the high-potential horse and landscape markets (+41% and +85%, respectively)
The Group also benefited from strong growth in the Farm Gates segment, single-handedly accounting for more than one-third of total H1 2021 revenue growth.
Drawing on its well-established reputation, Vital Concept has become a key brand and a leading partner in these two markets.
The Group is also expanding in its historical scope of operations, aided by successful diversification in high-demand categories such as the Tubular range in livestock equipment, wear parts with the development of the STEROK brand, and the Clothing & Footwear range.
FARMING NUTRITION
Farming Nutrition: Change of Management and cyclical downturn in exports due to the health crisis
At the beginning of the year, the Group’s Management decided to review the Operational Management of Farming Nutrition, under the Alphatech brand, to enable it to be able to follow the strategic roadmap. In addition, business was temporarily penalised due to the temporary impacts of the rise in bird flu cases in Southeast Asian countries combined with the conditions brought on by the COVID-19 health crisis, which continued to adversely affect export trade given that Alphatech earns more than 50% of its revenue outside
IMPROVEMENT IN PROFITABILITY CARRIED BY THE FARMING SUPPLIES DIVISION
The Group’s gross margin grew faster than business growth. Up +8% to €17.1m, it now accounts for 32.8% of revenue vs. 32.1% in H1 2020. Against a backdrop of generalised increases in commodities prices, this control of the gross margin illustrates the Group’s ability to effectively pass on purchase price increases.
The increase in business and the continuation of work to optimise logistics flows as well as the reduction in the use of subcontracting continued to favour the increase in EBITDA for the farming supplies division, which amounted to €2.2 million, representing 6.1% of revenue compared with 4.2% in H1 2020.
In the Farming Nutrition division, EBITDA increased to €0.6m compared to €0.2m in H1 2020, benefiting from the increase in gross margin, which helped limit the impact of the drop-in activity in the division due to the decline in export sales.
Overall, consolidated EBITDA amounted to €2.2m compared to €1.0m in H1 2020, representing an EBITDA margin of 4.3% of revenue compared with 2.1% in H1 2020. After reintegrating sponsorship and image rights expenses, the adjusted EBITDA rate was 4.5% vs. 5.1% in H1 2020.
After taking into account depreciation, amortisation and provisions for €1.3m, operating income amounted to €1.0m compared to €0.1m in H1 2020.
Net profit, Group share, amounted to €0.7m vs. €0.1m in H1 2020
A SOLID FINANCIAL STRUCTURE
As at
2021 OUTLOOK
Heading for a new phase of growth
In the second half of 2021, the Group is confident that the strong sales momentum will continue.
The next objectives will be focused primarily on the success of the integration, with the aim of extending the scope of BTN de Haas to the farming nutrition market, offering significant potential for development.
The Group will also capitalise on the strengthening of Alphatech’s managerial structure, whose mission will be to increase the awareness of the Alphatech brand and accelerate its sales once the health situation stabilises. This business development plan will ultimately be linked to the production of the food supplement plant, which is expected to begin construction in the coming months.
On the
In the longer term, the Group reiterates its targets, which, by 2025, aim to achieve revenue of around €200m and an EBITDA margin of around 6.5%. Half of this acceleration in growth would be achieved through organic growth and half through external growth.
About
Founded in Loudéac, in the heart of Brittany, in the early 1990s,
In 2020,
By 2025,
For more information about the company: www.winfarm-group.com
Contacts:
investisseurs@winfarm-group.com | |
ACTIFIN, financial communications Benjamin LEHARI +33 (0) 1 56 88 11 11 winfarm@actifin.fr | ACTIFIN, financial press relations Jennifer JULLIA +33 (0)1 56 88 11 19 jjullia@actifin.fr |
1 From 2021, the title sponsor contract becomes a partnership contract
Attachment
- WINFARM_CP_RS_2021 vDEF
UK
© OMX, source