2022 HALF-YEAR RESULTS IMPACTED BY STRUCTURING INVESTMENTS

Lumibird SA

Lannion, September 22, 2022 – 5:45 p.m.

2022 HALF-YEAR RESULTS IMPACTED BY STRUCTURING INVESTMENTS

  • EBITDA of €11.2 million, down 22%

  • Resilient gross margin rate in a complex global environment

  • Strong business growth expected in the second half

  • 2023 objectives confirmed

The LUMIBIRD Group, European leader in laser technologies, reports a contraction in its results in the first half of 2022. First-half revenues temporarily grew less quickly than expenses, partly linked to the impact of inflation, but above all to absorb the strong growth that the Group expects to achieve in the coming semesters and more particularly in the second half of this year.

Extract from the condensed half-year consolidated financial statements approved by the Board of Directors on September 22, 2022

As of June 30 (€m)

H1 2022

H1 2021

To change

Valuee

%

Revenue

84.0

75.4

+8.6

+11%

EBITDA

11.2

14.3

(3.1)

-22%

% income

13.3%

19.0%

current operating income

3.9

8.6

(4.7)

-55%

% income

4.6%

11.4%

Operating result

2.5

8.0

(5.5)

Income before tax

2.1

6.9

(4.8)

Net revenue

1.2

5.1

(3.8)

Sustained growth maintained in the first half of 2022

The consolidated revenue of the LUMIBIRD Group amounted to €84.0 million as of June 30, 2022, up 11% (+9% like-for-like and at constant exchange rates). This growth is split equally between the Photonics and Medical divisions, with, however, different deferred deliveries from one quarter to another according to the business sectors.

  • For the Photonics division, the contrasting levels of progress do not necessarily reflect the general trend. The Industrial and Scientific businesses recorded half-year growth of +2% (to €17.4 million), while the Lidar activity increased by +48% to €11.0 million, with an increase in sales for both Lidar and for OEM systems. Defense / Space activity was stable in the first half (+1% to €10.2 million). On May 31, 2022, Lumibird Photonics Sweden, which took over the laser rangefinder activities (formerly SAAB), became operational. Its contribution to the first half is marginal (0.36 M€).

  • The Medical division, with half-year growth of +11% (€45.4 million), benefited from an acceleration in sales, particularly in the United States and Japan, where the strengthening of the sales teams and the expansion of the range of products in very positive trends.

Contrasting contributions for the two divisions

Summary of results for each division

(m)

Photonics

Medical

2021-H1

2022-H1

To change (%)

2021 –H1

2022-H2

To change (%)

Revenue

34.seven

38.seven

+11.3%

40.seven

45.4

+11.5%

Gross margin

23.2

24.seven

+6.4%

24.4

27.seven

+13.6%

%

66.9%

64.0%

60.0%

61.1%

BEITDA

6.seven

3.seven

-43.8%

seven.6

seven.5

-2.4%

%

19.2%

9.seven%

18.8%

16.4%

Op. in progress income

3.seven

(0.8)

-123%

4.9

4.seven

-3.1%

%

ten.seven%

(2.2) %

11.9%

ten.4%

The Group’s gross margin rate remains high, at 62.4%, compared to 63.1% in H1 2021. However, this change presents differences between the two divisions, mainly due to a price effect, which is more favorable to the Medical division (61.1% gross margin vs 60.0% in H1 2021), in which price increases can be passed on almost immediately, while the Photonics division (64.0% vs 66.9%) is held back through a structure of longer-term contracts.

During the first half of 2022, LUMIBIRD recorded €11.2 million in EBITDA, or 13.3% of revenue, compared to 19.0% a year earlier, linked to the structuring of the organization with a view to of a higher level of activity in 2022 and beyond. Structuring investments began in H2 2021 and continued in H1 2022. They will enable the Group to deliver the expected growth and operational performance.

The temporary contraction in profitability is more evident for the Photonics division (EBITDA margin of 9.7% vs 19.2% in H1 2021) than for the Medical division (16.4% vs 18.8% in H1 2021). This mainly reflects the additional structural costs recorded by the Photonics division to prepare for future growth.

Current operating income for the first half of the year amounted to €3.9 million compared to €8.6 million in the first half of 2021.

After -€0.4m in financial income and expenses (vs -€1.1m in H1 2021) and €0.9m in taxes (vs €1.8m in H1 2021), net income stands at €1.2 million compared to €5.1 million for the first half of 2021.

Cash flow: capex and increased inventory to prepare for the future

(m)

06/30/2021

06/30/2022

Net operating cash flow

8.1

(10.2)

Operating cash flow before interest and taxes

14.5

11.0

Change in WCR

(7.7)

(20.1)

Taxes paid

1.3

(1.0)

Net cash flow from investing activities

(7.7)

(18.2)

Capital expenditure

(4.8)

(10.6)

External growth

(2.3)

(7.2)

Other investments in financial assets

(0.5)

(0.4)

Net cash flow from financing activities

(1.0)

(0.7)

Increase in capital

Net loan issuance

(0.1)

1.3

Funding cost

(0.8)

(1.3)

Other change

(0.1)

(0.7)

NET CASH FLOW 1

(0.6)

(29.1)

The combined impacts of the components crisis and the preparation for a high level of production in the second half resulted in a significant increase in inventory levels (+€11.2 million) at the end of June. Investments in industrial facilities, including the extension of the Lannion site, the creation of the Gothenburg site to integrate the rangefinder activities (formerly SAAB), and the preparation of the new site to take over the Ulis activities (€5.2 million ) , also had a significant impact on first-half investments. During the first half, the total cash requirement, representing nearly €30 million, was entirely covered by existing cash.

Balance sheet position

Balance sheet highlights (€M)

31.12.2021

30.06.2022

Good will

70.3

71.1

Non-current assets (excluding Goodwill)

94.5

104.4

Current assets (excluding cash)

85.7

113.2

Cash and cash equivalents

97.1

68.6

TOTAL ASSETS

347.6

357.3

Equity (including minority interests)

181.3

185.0

Long-term financial liabilities 2

97.9

96.4

Other long-term liabilities

10.5

9.4

Current financial liabilities

14.1

21.5

Current liabilities

43.8

45.0

TOTAL LIABILITIES

347.6

357.3

Net financial debt, made up of €117.8 million in gross financial debt and €68.6 million in cash, amounted to €49.2 million as of June 30, compared to €14.9 million as of December 31, 2021.

Despite this temporary increase in net debt, LUMIBIRD still benefits from a solid financial situation, with a gearing of 26.6%, allowing the Group to maintain its financial flexibility and its ability to continue to finance its external growth ambitions.

Outlook

With a still extremely solid order book and a sustained level of demand, combined with a stabilized level of costs, LUMIBIRD expects, during the second half of the year, to largely make up for the delay in profitability recorded in H1. The investments made in the Group’s industrial tool and the strengthening of its capacities should support strong commercial development over the coming semesters.

In this context, the Group confirms its objectives for 2023 of revenue of €250 million, driven by organic and external growth, with an EBITDA margin that should continue to grow within a range of 20% to 25 %.

Next meeting :

Q3 2022 revenue on October 24, 2022 after market close

LUMIBIRD is one of the world’s leading laser specialists. With 50 years of experience and expertise in solid-state laser, laser diode and fiber laser technologies, the Group designs, manufactures and markets high-performance lasers for scientific use (laboratories and universities), industrial use (manufacturing, defense , Lidar sensors) and medical (ophthalmology, ultrasound diagnostics markets).

Born from the merger of Keopsys Group with Quantel in October 2017, LUMIBIRD has more than 940 employees and more than 162 million euros in consolidated turnover in 2021 and is present in Europe, America and Asia.

LUMIBIRD shares are listed on compartment B of Euronext Paris. FR0000038242 – LBIRD www.lumibird.com
Since 2022, LUMIBIRD is part of Euronext Technical Leaders

contacts

LUMIBIRD
Marc Le Flohic
President and CEO
Such. +33(0)1 69 29 17 00
[email protected]

LUMIBIRD
Aude Nomblot-Gourhand
Secretary General – Chief Financial Officer
Such. +33(0)1 69 29 17 00
[email protected]

Calyptus
Mathieu Calleux
Investor Relations
Such. +33(0)1 53 65 37 91
[email protected]

1 Cash corresponds to “cash and cash equivalents” on the asset side of the balance sheet, net of current bank debt (cash liabilities) included in current financial liabilities on the liability side of the balance sheet/liabilities)
2 Financial liabilities (current and non-current) include lease debts according to IFRS 16

Attachment

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